Having a place to call your own is a dream. Protecting this valuable asset that you worked hard for is not just smart, but essential. As a homeowner, you may know you need home insurance but have you thought about a home warranty? Do you know the differences between the two and what you need?
What is the difference between a home warranty and home insurance?
A homeowner insurance policy covers any accidental damage to your home and belongings due to theft, storms, fire, listed natural disasters, and other covered perils. A home insurance policy covers four primary elements: the interior and exterior of your home, personal property, and general liability that can arise when a person is injured while on your property.
If you take out a mortgage, the lender will most likely require you to purchase a homeowner insurance policy to protect their investment. This type of policy is renewed yearly, and you should always look over your coverage when your lifestyle and home changes.
A home warranty is a service contract that provides repair and replacement for your systems and appliances that fail due to age and standard wear and tear. Typically, your HVAC systems, electrical, plumbing, kitchen appliances, washer, and dryer are covered under these warranties.
Home warranties don’t cover damage caused by malfunctioning systems or appliances. For instance, if a dishwasher was leaking, the home warranty company would help to fix the dishwasher, but would not help to repair any water damage that was caused to the structure of the home because of the leak. The protection of a home warranty can potentially save you hundreds of dollars and the headache of finding a trusted service contractor to make the repairs.
Together, a home warranty and home insurance give you financial peace of mind. Are you looking for home insurance? The team at Hoffman Brown Company are ready and waiting to help you find reliable and responsible insurance for your property. Contact us today to get started!