Homeowners insurance can be a great thing for homeowners. It’s designed to protect your home and possessions, while also offering assistance in the case of any damage or theft. Many people, though, don’t pay enough attention to homeowners insurance and other kinds of coverage that extend beyond insurance. For example, a home warranty can offer all of the same features that insurance does, but at a lower cost. That’s why it’s crucial to know the differences between homeowners insurance and a home warranty.
With the right understanding, you can choose the right homeowners insurance policy, and also choose the right kind of home warranty for your home.
Types of Home Warranty Coverage
Most homeowners have home warranties for their homes. Typically, homeowners insurance provides the basic, primary coverage for your home. These warranties cover problems related to damage from disasters. They also provide coverage for other types of problems that may occur.
For example, they will cover any repairs needed to keep your home up to standards. However, a home warranty adds to that coverage. You may get unlimited coverage on minor repairs or repairs made after an incident. While you may have some limitations, the extra level of coverage can be very valuable for some problems that would have been covered by a homeowners insurance policy anyway.
Types of Home Warranty Covers
A typical homeowners warranty will cover anything from the obvious, such as normal wear and tear, a leaky faucet, or worn out carpet, to the really common stuff, such as:
- Air Conditioning
The few remaining elements are, again, generally covered by the homeowners insurance. However, it’s worth reading the fine print to find out exactly what the warranty will and won’t cover. In some cases, it may cover one of the problems listed above, or you may have to pay a small fee for something you don’t expect it to cover.
Determining the Best Type of Home Warranty Coverage for Your Home
Home warranties vary greatly in what they cover. Some cover repairs, others extend coverage to any significant loss. This can be especially important if a disaster occurs that needs additional assistance in getting your home in shape. For example, if your house is severely damaged by a fire, your home warranty may provide financial assistance to help you get your home fixed. You could also have a deductible, or an annual payment for something that your home warranty doesn’t cover. Whatever the specific cost of the coverage, it’s important to make sure it’s the right type of coverage for your home.
In the case of a home warranty, it’s all about cost and features. Most will cost less than your homeowners insurance, but some will cost more. They can last for anywhere from one year to 10 years, or even longer. Some are even better than your homeowners insurance, because they offer additional coverage that you might not otherwise get from a home warranty, like:
- Repairing things like mold or severe water damage
- Adding additional exterior protection to keep water and fire out
- Replacing electronics or appliances
- Replacing or repairing water heaters, furnaces, air conditioners, and more.
If you’re unsure which is the right type of home warranty for your home, talk to a local repair expert about your situation. In the case of a flood, it might make more sense to use a home warranty instead of a flood policy on your home insurance. It’s also worth exploring what options you have with your homeowners insurance if you’d like to buy a more complete or specialized home warranty. If you do choose a home warranty, make sure you have a way to get work done without getting yourself into debt.
To learn more about finding the right type of home warranty coverage for your home, contact HomeSafety.Net today. We offer free consultations for people who are considering home warranties, and our home warranty sales and service team are committed to helping you find the best option for you and your home.
Home warranties are optional. In fact, most insurance companies will let you choose to buy a free home warranty if you want.
Warranties are only legal in certain states. Check with your insurance company to see what level of coverage they provide for your specific area.
In some cases, you may have a deductible to pay. This is money you have to pay before your insurance company will cover your losses.
You will have to pay out of pocket if you have to make any additional improvements to your home that are not covered by a standard home warranty.