Home warranties are designed to offset the costs of repair and replacement of covered items. There are, however, some misconceptions regarding the benefits of home warranty coverage as compared to your home insurance.

Homeowner’s insurance typically covers:

  • Acts of nature
  • Accidental damage
  • Theft
  • Property liability
  • Home interior and exterior


Home warranties typically cover:

  • Systems
  • Appliances
  • Garage door openers
  • Water heaters
  • Washer/Dryer


What is the difference?

Homeowner’s insurance is often required by the lender if the home has a mortgage. It doesn’t usually cover mechanical repairs or replacement unless damage was from things like fire or weather. Your homeowner’s insurance renews annually and typically costs between $400-$1000 per year. All policies have a deductible which you pay when a claim is made. The higher the deductible the lower your yearly policy will cost.

Having home warranty coverage provides peace of mind that your appliance or component will be fixed or replaced in a timely manner, without causing unnecessary financial hardship. A home warranty functions as a service contract and plans usually last 12 months and are renewable. Annual coverage often starts at $400 and up. Like a homeowner’s insurance policy, a home warranty can offer various deductibles which you also pay when a claim is made. A home warranty is an option and not required by your mortgage lender.

Your home is one of the greatest investments you’ll ever make. Financial protection is imperative. Having both homeowner’s insurance and a home warranty in place you are a good way of safeguarding your assets for the unforeseen future.

What is a Home Warranty?

Home warranty coverage protects your home