Should You Protect Your Property With Home Insurance or a Home Warranty?

Closing on a property can be overwhelming when there are dozens of documents ready to be signed. That may be why people are becoming more aware that home warranty vs home insurance documents are quite different. Although both will provide insurance coverage after an emergency, they provide separate types of coverage.

Home Insurance

There are many types of home insurance policies available to homeowners. Typically, the standard coverage will include:

  • Theft
  • Accidents
  • Liability
  • Disasters

Your home’s structure will also be covered if it is damaged, and your personal belongings will be protected if they are damaged or stolen.

Home Warranty

A home warranty coverage is meant to assist you when unexpected repairs around your home are necessary that are not disaster-related. You can think of it as a long-term service contract. Some of the items that can be covered are:

  • Kitchen appliances
  • Washers and dryers
  • Central air and heating
  • Water heaters

You can also add coverage for wells, septic tanks and pools.

Warranty vs. Insurance

Although you may believe home warranty vs home insurance policies are in competition with one another, that is not the case. The two are compatible and provide more complete coverage when applied together. Home insurance policies often include exclusions that a home warranty policy can cover. Together, they can provide the right coverage when you need it.