What is Home Warranty?
Home warranty provides financial protection against unexpected home repairs and replacements. It covers the cost of fixing or replacing major appliances, systems, and components that fail due to normal use or manufacturing defects.
Key Features
- Cost: Typically lower than homeowners insurance premiums
- Deductible: Varies by provider, but often $500-$2,000
- Coverage: Applies to major appliances, systems, and components that fail due to normal use or manufacturing defects
What is Home Insurance?
Home insurance provides financial protection against losses due to unexpected events, such as theft, natural disasters, or damage from accidents.
Key Features
- Deductible: Varies by provider and policy type
- Coverage: Applies to various types of losses, including theft, natural disasters, accidents, and more
- Premiums: Typically higher than home warranties
When to Choose Home Warranty over Home Insurance
Home warranty is a good option for those who want financial protection against unexpected repairs without having to pay high premiums.
When to Choose Home Insurance over Home Warranty
Home insurance is a better choice when you have valuable items that are worth significant amounts of money, or if you're building or renovating your home.