Home Warranty
A home warranty is a contract with a manufacturer or supplier that covers specific parts of your home, such as appliances, plumbing, and electrical systems, against failure due to normal wear and tear. Home warranties are often used in new construction homes, but can also be purchased for existing homes.
- Typically offers coverage for 1-5 years, depending on the manufacturer or supplier.
- Covers specific parts of your home, such as appliances and plumbing systems.
- Payments are usually handled by the homeowner, with some manufacturers requiring upfront payments.
Home Insurance
Home insurance is a contract between you and an insurance company that covers damage to your home due to various risks, such as fire, theft, or natural disasters. Unlike a home warranty, home insurance provides broader protection against unexpected events.
- Typically offers coverage for 1-2 years, depending on the insurance provider and policy options.
- Covers damage to your entire home, not just specific parts, such as appliances or plumbing systems.
- Payments are usually handled by the homeowner, with some policies requiring upfront payments or premium payments.