What is the Difference between Home Insurance and Home Warranty?

Defining Home Insurance vs Home Warranty

Maintaining a home ultimately involves a variety of maintenance, repairs and replacements. These necessities can be costly over time. To get the most out of your California property, you need a financial buffer against unexpected expenses. As a homeowner, you get home insurance to protect against fire, water and other significant property damage. You can also buy a home warranty, which covers breakages to home electrical systems and appliances that home insurance does not typically cover. Here are some insights:

What Home Insurance Is and What It Covers

You should understand exactly what home insurance covers. Homeowners insurance provides protection from certain types of losses, such as burglary or a natural disaster like fire damage. Lenders require borrowers to purchase home insurance in order to get a mortgage, as the property is the collateral for the home loan.

Make sure you discuss what your particular policy covers before you commit to it. Generally speaking, homeowners insurance covers the structure of a home, as well as its contents. This kind of insurance also covers liability in case a visitor to your home is injured while on your property.

You should also be aware of what is not included in your home insurance policy. Earthquake damage, for instance, is excluded from most California home insurance policies. This insurance also does not cover the electrical or plumbing systems in your home and on your property if they stop working (although damage caused by a malfunction could be covered.) These systems might include a pool filtration system, a water heater, and your appliances.

Understanding Home Warranty Policies

Like home insurance, a home warranty protects the homeowner from loss. A home warranty policy works as a service contract. When appliances and system components require replacement or repairs, a warranty helps to cover the expense. In addition to appliances, such a warranty covers systems within the home or on the property like the electrical or plumbing systems. This type of warranty could be invaluable if you need to replace an important piece of equipment like a heating and air conditioning unit.

California Home Inspection Services

Home inspection will help you determine the condition of your home and major components of the home. HomeGuard Incorporated can provide that service, with home and roof inspections as well as termite inspections. We service Northern California and the San Diego Area in Southern California. Contact us today to schedule an inspection. Visit HomeGuard HomeWarranty for information about home warranties.