Home Warranty or Home Insurance?

You would have heard of home insurance but what is home warranty? A home warranty covers the risks in the home appliances and systems at your home. But why do you need it if you already have a home insurance? Read more from the article how home insurance and warranty goes hand in hand. This article covers

• What is home warranty?
• How it differs from home insurance?
• What is the need for it?
• Who needs a home warranty?
• Who needs a home insurance?

If you have been shopping around for home insurance, you may have come across the term home warranty insurance. Many home warranty companies today offer a low-cost home warranty plan that can help you save thousands of dollars in case your washer, dryer, stove, wiring system, plumbing system, heating system, or major appliances gets damaged. However, it is important to realize that home warranty plans are not the same as home insurance. Even if you get a warranty on your home, you'll still need insurance. However, if you already have insurance, a warranty on your home can make financial impact and can help you cover some common costs that are not covered by insurance.

What a Home Warranty Means?

A home warranty is a type of guarantee or insurance that covers the major systems and appliances in your home. This means that if your refrigerator, appliances, heating systems, or other major systems break down, the company from which you have got your home warranty will help you replace or repair these appliances or systems. Unlike insurance, a home warranty protects you from normal wear and tear. This means that your major systems and appliances will be replaced in case of a fire or theft. Rather, with a warranty, what you're getting is replacement or repair in case something breaks down your home. Basically, a home warranty takes over those types of coverage which you may need but which insurance does not provide.

Why Do I Need A Home Warranty?

Most of us hope that a fire or theft will never occur to our home. In many cases, we can avoid such tragedies. Fire, flood, and other disasters are far less frequent than mechanical breakdowns. If we own a home, the chances that a major appliance involving heating, plumbing, or wiring system will break down or needs repair are great. Most homeowners have to replace key appliances or fix key home systems at least a few times. A home warranty can help you with these costs.

The cost of replacing a heating system, wiring system, a plumbing system, or even the cost of replacing or fixing major appliances can easily add up to hundreds or even thousands of dollars. Arranging huge funds on short notice can be challenging, especially if you are on a budget. A home warranty allows you to pay a small amount each month in order to get the peace of mind while replacing those that are broken in your home. A home warranty ensures that you will never have to do without because you cannot afford basic repairs and it ensures that you easily be able to afford any repairs that need to be made on your home systems or appliance.

Continue to:Do I Qualify For Home Warranty?