Mon Jul 9 2018
Home warranty insurance is a service contract that covers damage to major household appliances and systems. It is not the same as homeowners insurance.
Home warranty insurance is a service contract that covers damage to major household appliances and systems, such as:
Much like a manufacturer’s warranty, a home warranty pays to repair or replace a covered item when it malfunctions within a certain time frame, typically a year. These contracts cover damage from regular use and age, which is one reason homeowners find them so attractive, especially if they are new buyers or are purchasing an older home.
Another benefit for homeowners is the simplicity of a home warranty. When their dishwasher breaks down, they only have to make one phone call. The home warranty company takes care of the rest.
While a home warranty may be a good fit for your needs, it doesn’t replace the need for homeowners insurance.
No. A home warranty is not the same as a home insurance policy. Homeowners insurance primarily offers three types of protections:
Your appliances are your personal property, and your home insurance can help pay to replace them when covered events damage them, like a fire or windstorm. However, it won’t cover their replacement when they simply won’t work or malfunction. For that, you’d need a home warranty.
Home warranty insurance may not offer the same protections a homeowners policy does, but you may still want to investigate the option if you’re:
Chances are you won’t have to look far for a home warranty company, but pick a reputable one to avoid potential scams:
Customer reviews are also a useful way to assess a company’s credibility. Look them up on Yelp or Trustpilot to get an impression of fellow homeowners’ experiences.
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