Home insurance is designed to protect your home and personal belongings from unexpected disasters or accidents. It typically covers damage caused by events like fire, theft, vandalism, storms, or other natural disasters. Home insurance policies also provide liability coverage in case someone gets injured on your property or you accidentally cause damage to someone else’s property.

Common Coverage of Home Insurance:

• Damage to the structure of your home (roof, walls, foundation)
• Personal property (furniture, electronics, clothing)
• Liability protection for injuries or damages to others
• Additional living expenses if your home becomes uninhabitable due to a covered event

While home insurance covers major incidents, it does not usually cover day-to-day breakdowns of appliances or home systems that come from normal wear and tear. That’s where a home warranty comes in.

What Is a Home Warranty?

A home warranty, on the other hand, is a service contract that covers the repair or replacement of major home systems and appliances that fail due to age or regular use. Think of it as an added layer of protection for the things that keep your home running smoothly, such as your HVAC system, plumbing, electrical systems, kitchen appliances, and more.

Common Coverage of a Home Warranty:

• HVAC systems
• Electrical systems
• Plumbing systems
• Water heaters
• Kitchen appliances (refrigerators, ovens, dishwashers)
• Washers and dryers

Unlike home insurance, which is mandatory for mortgage holders, a home warranty is optional. However, having both can save you significant costs in the long run by covering different aspects of homeownership.

Key Differences Between Home Insurance and a Home Warranty

1. Coverage Scope

   • Home Insurance: Protects against external threats like natural disasters, theft, and liability.
   • Home Warranty: Covers internal systems and appliances that fail due to regular use and aging.

2. Mandatory vs. Optional

   • Home Insurance: Required by lenders if you have a mortgage.
   • Home Warranty: Optional but recommended for peace of mind against costly repairs.

3. Claim Types

   • Home Insurance: Claims are filed when an unexpected event causes damage to your home or property.
   • Home Warranty: Claims are filed when appliances or systems stop working due to wear and tear.

4. Out-of-Pocket Costs

   • Home Insurance: You typically pay a deductible for repairs, and coverage kicks in for major repairs or replacements after that.
   • Home Warranty: You usually pay a service fee for each repair visit, but the warranty covers the rest.

Why You Might Need Both

While home insurance protects you from catastrophic events, a home warranty helps with the everyday wear and tear that insurance doesn’t cover. Together, they form a comprehensive protection plan for your home. With home insurance, you’re covered if a tree falls on your roof, but with a home warranty, you’re covered if your air conditioner stops working in the middle of summer.

By having both, you can reduce your financial risk in two critical areas—unexpected disasters and normal wear and tear. This combination can provide peace of mind knowing that your home is fully protected from a wide range of potential issues.

Conclusion

In summary, home insurance and a home warranty complement each other but serve different purposes. Home insurance is essential for protecting your property from major disasters, while a home warranty offers protection against the inevitable breakdown of home systems and appliances. For most homeowners, having both is the best way to ensure your home is fully safeguarded, no matter what life throws your way.

If you're interested in learning more about how a home warranty can benefit you, or if you want to explore our coverage options, feel free to contact us at Infinity Home Protection. We're here to help you find the right plan to protect your home and your budget!