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Realty Executives Gallery Properties (Orlando)


Home Warranty vs. Home Insurance

(Published on - 7/13/2020 7:54:55 PM)



Owning a home is a big responsibility and an even bigger investment. Once you purchase a home, you want to protect and care for it, because you do not want that investment to fall or break. That is where both home warranty and home insurance policies come in. They could be mistaken for the same thing; it is an honest mistake. They both protect your home in some way, but each protect it in a different way, and we are here to tell you how!

Home Warranty: A home warranty is a service contract that provides for repair or replacement of things in your home that fail due to age or standard wear and tear. For example, things like washer and dryer, kitchen appliances, electrical, plumbing, pool, etc. Home warranties typically have 12-month contract terms and are not mandatory. It is, however, a great investment when purchasing a home. You are essentially saving money when investing in a home warranty policy if you think about it. You will have a contract, and that contract outlines what is covered. So, if your AC system stops working, a licensed technician will come and look at the problem, then per contract, fixing will take place. Every contract is different and coverages are also different. This saves a ton of money and time because you are not paying hundreds to thousands of dollars to fix systems in the house because we know these things are costly, but also saves you time in finding a trusted service contractor. Life happens, and chances are, if you live in this house for a while, which most people do when purchasing, then things will happen, whether the sytem is new or old. 


Home Insurance: Home insurance covers any accidental damage done to your home due to theft, storms, fires, and other natural disasters; basically, things out of your control. The four primary areas covered under home insurance are the interior and exterior of the home, personal property in case of theft, loss, or damage, and general liability if someone is injured while on the property. A big difference between home insurance and warranty policy is that a home insurance policy is normally mandatory. Before you issue a mortgage, a bank will require you obtain one before agreeing to issue you the mortgage. Just like a home warranty, a home insurance policy is renewed yearly. Average costs of insurance are between $300 and $1000. Like car insurance, there is a deductible that you are responsible for upon a claim being made.


Like we said, home insurance and warranty are both available to protect your home, but their coverages differ. Also, we mentioned that home insurance is necessary as opposed to home warranty, which is optional. Think of it this way, home insurance ensures your home is protected if any natural disasters or out of your control things happen that can cause a big impact on the safety of your home. Warranty focuses on smaller, but not any less important, systems inside the home specifically. These things also can be out of your control, like we said, due to wear and tear or with age. From small to big occurences, home warranty and home insurance are available to keep you protected and mind at ease. 



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