Home Warranty vs. Homeowner Insurance; What Is the Difference? | Times Square Chronicles

Posted on: January 29, 2018 by in Real Estate
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Many homeowners confuse homeowner's insurance and a home warranty. Homeowner's insurance covers both physical damage to the home and the property around it. For example, if a fire breaks out inside the house and causes more damage than the cost of the deductible, an insurance representative will assess the damage and make a claim. Similarly, a home warranty covers issues like a broken air conditioner, which don't cause significant damage to the home but are costly. Homeowner's insurance is mandatory if you have a mortgage but a warranty is not.

Key Takeaways:

  • Homeowners insurance is usually required when you carry a mortgage and covers such losses as damage from fires and storms.
  • Home warranties are optional service contracts that can cover the repair or replacement of a variety of things including HVAC systems, plumbing, and pools.
  • Some home insurance policies come with home warranties but that isn’t necessarily the norm.

“Taking up a home insurance policy might be mandatory but home warranty products are purely optional.”

Read more: http://t2conline.com/home-warranty-vs-homeowner-insurance-what-is-the-difference/

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