Home Warranty vs Home Insurance: What to Consider When Choosing

As a homeowner, making an informed decision about which option to choose between home warranty and home insurance is crucial for your financial security. While both coverages provide essential protection, they differ significantly in their scope of coverage and responsibilities.

Differences in Coverage

Home warranties typically cover major repairs and replacements for items covered under the policy, such as appliances, plumbing fixtures, and electrical systems. In contrast, home insurance protects your home from damage or loss due to perils like fire, theft, and natural disasters.

Responsibilities for Each Coverage

When choosing between a home warranty and home insurance, consider who bears the responsibility. Home warranties usually require you to pay for repairs or replacements out of pocket, while home insurance policies typically absorb these costs.