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The Key Differences Between Home Insurance and a Home Warranty

  • July 18, 2019

What Are the Differences Between Homeowners Insurance and a Home Warranty?

When you’re in the process of moving home, you will inevitably face a lot of paperwork and jargon. Not surprisingly, people often confuse the home warranty with a home insurance policy. Both are similar in that they are designed to protect you when something goes wrong in your home, however, there are key differences which make getting the right coverage important. To understand the difference between a home warranty and home insurance in Thousand Oaks, CA, read on.

Home Warranty

A home warranty covers the cost of breakage caused by everyday wear and tear or from old age. It covers main, big-ticket appliances within a home such as a washer, dryer, refrigerator, the furnace, hot water heater, and more. Some policies cover air conditioning units, plumbing, and the swimming pool.

Having a home warranty in place means that if your dishwasher breaks down, the cost of repair, parts, and replacements would be paid for by a home warranty. Although this coverage is incredibly useful for homeowners who have splashed out on top-of-the-line appliances, it is an optional coverage.

Home Insurance

Home insurance, on the other hand, is typically required for homeownership. Before a bank will issue a mortgage on the home, they may require the homeowner to purchase home insurance to protect their investment. Home insurance is there when your home suffers loss or damage due to a covered peril, such as theft, fire, natural disasters, structural damage, vandalism, and more. It also provides liability coverage which protects the homeowner from liability if someone injures themselves or their property and the homeowner is found to be at fault.

If your home suffers a kitchen fire, your homeowners insurance can help to replace the damaged appliances and belongings. If your oven quits working, repair and replacement would not be covered through a home insurance policy, but by a home warranty.

Are you ready to find the right homeowners insurance? Talk to one of our friendly and experienced agents at Falsken & Associates Insurance Agency serving Thousand Oaks, Westlake Village, and neighboring cities in California.