First American Home Warranty is a leader in its field and a company which offers protection to so many properties throughout the country. A good friend of mine works for the company and he was telling me recently about the number of people who make the mistake in thinking that home warranty is the same as home insurance. First of all I should mention that if you already think this, then you are mistaken and they are two separate plans. The second thing to mention is the importance of knowing the difference, as there are some things that your home insurance just doesn’t cover. To clear up any confusion, here’s the difference between the two.
Home Warranty and What it Covers
Home warranty is a policy which will greatly help you to protect your home in terms of the systems inside it. HVAC systems, electronics, plumbing and gas in the home is all covered by a home warranty policy whereas this isn’t covered by a home insurance policy. When you compare a home warranty policy be sure to check price, experts picks, reviews and customer service, as these are the key indicators which separate the companies.
What Home Insurance Covers
When we talk home insurance that is the policy which will cover the structure of your home and the possessions within it. Your policy will help you if you have accidents in the home, if your home is damaged as a result of adverse weather or if you are the victim of theft. A home insurance policy will normally have a higher deductible than that of a home warranty policy so buyers of both should be aware of this. home insurance covers the majority of your home but it is important to remember that it doesn’t cover everything as some like to believe.
Example of the Difference Between the Two
To highlight the key difference between home warranty and home insurance, it is best to offer an example of when you may need both. If you live in California then you will know all about the dangers of earthquakes and wildfires. Now let’s assume that there is an earthquake in San Francisco and your home is damaged as a result, and you have a water pipe which breaks. In this situation you will call up your home insurance company who will help you to fix and repair the structure of your home and replace any possessions which you lost as a result of the water damage. The insurance company however will not give you any help in fixing the broken pipe or reviewing your plumbing system for damage, a home warranty policy will. As you can see, this is why so many believe that it is much better for you to cover yourself completely with home insurance and home warranty.
Don’t run the risk of not having your home totally covered, as it could be expensive if something goes wrong.