I've often had buyers who are confused that they need both a Home Warranty AND Home Insurance. They sound like they do the same thing right? But, that couldn't be farther from the truth. Let's look at the specificics that make these so different.
First, home insurance is required by law and a home warranty is optional. Both items can vary greatly in cost and coverage. What each one covers is very different as well.
A home warranty covers your major appliances and home insurance covers your structure during a natural disasters or catastrophe. Here is a break down of what each one actually covers:
Home Warranty's
-Appliance Repairs
-Plumbing Problems
-Electrical Problems
Often having a home warranty can releive a lot fo the stress a home owner may have when the times comes to replace old appliances. It often only requires the home owner to place a claim and the appliance will be replaced. This can save a lot of money for the home owners in the long run. When considering a home warranty, be sure to look around. Look at reviews, pricing, and quotes of all major compainines.
Home Insurance
-Structure of the house
-Personal Belongings
-Liability Protecton
Home owners Insurance is regulated by the state and the type of policy. It also gives you liability protection in the event that someone is hurt on your property. However, it does not cover repairs to belongings due to wear and tear. For information on local Home Warranty companies contact effectivebuyer.com.
As you can see, the home warranty and insurance are complementary to one another but completely different. By having both owners are protecting EVERYTHING they own. Not to mention the piece of mind they'lln recieve by knowing they have protected one of their biggest life purchses.
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