Home insurance and warranties can both work to keep you house covered in case of any damage.
Both homeowners insurance and home warranties are meant to provide coverage for your house in case of a disaster. However, they differ in exactly what type of coverage they actually provide. Use this guide to help you better understand the differences between home warranties and home insurance.
Homeowners Insurance
Home insurance is meant to provide coverage in case of accidental damage to your house and personal property during a fire, storm, theft, or certain natural disasters. Home insurance provides coverage for three specific areas, including personal property, exterior/interior of your house, and general liability if someone is injured on your property.
In most cases, your lender will require that you invest in homeowners insurance when you are approved for a mortgage. You renew your home insurance policy every year and will have to pay a deductible when you make a claim.
Home Warranty
Home warranties are service contracts that will cover the cost of replacement or repairs of certain appliances and systems that fail due to normal wear and tear or age. Your electrical, HVAC, kitchen appliances, and plumbing are typically covered in a home warranty. You are not required to buy a home warranty when you buy your house, but should consider investing in one since it will provide additional coverage that you can benefit from. Typical warranties will last for 12 months, after which you can choose to renew the contract or forfeit your coverage.
When looking for the right homeowners insurance policy, contact Scautub Agency in Scotia, New York. As an independent insurance agency, we will work closely with you to ensure you are able to invest in the right policy to meet all of your needs, all at the right price to fit your budget.