Owning a home comes with a lot of responsibility in terms of protecting your belongings and the house itself. Having a home warranty and insurance coverage can relieve some of the stresses that come with leaky plumbing and broken appliances. There is definitely a risk associated with choosing to use a home warranty or insurance company, but should something major happen, having one or both of these services can save a lot of money.
The main difference between a warranty and homeowners insurance is that home warranties cover appliances and systems within the house that stop working, while home insurance covers the structure and most contents from natural disasters. This means each policy helps with something different and often times people get both when buying a house.
To explain the difference further, a home insurance plan can relieve some of the stress that comes with the damage associated with a hurricane or tornado. For locations where these are not likely to occur, it can also help cover costs associated with things like a fire, lightning, burglary or certain water damage. Home insurance covers personal property like jewelry, clothing and furniture up to a certain amount. It also covers structural damage and costs associated with living if the house isn’t livable. Third party injuries are covered if you are sued, and appliances are covered if the damage was due to a natural hazard.
Home warranty companies, on the other hand, cover the costs associated with maintenance and repair. Things like electrical systems, plumbing, air conditioning and flooring are covered under most home warranties. When your fridge or oven breaks or your air conditioning stops working do to normal wear and tear, your warranty covers the cost of repair (or replacement, if necessary). Make sure you read the details of a home warranty closely, as things like roof repairs or smaller appliances may only be covered for an extra charge, and you want to pick a company who can provide you what you need for the best price.
Having both or one of these services can really help in case of an emergency, but they each have their own costs. The expenses associated with warranties and insurance policies differ greatly from each other. Home warranties can run from as low as $200 to as high as $700 a year based on what you decide to have covered. Prices for home insurance vary greatly as things like value, location and loan information are considered before a quote can be given.
Most people buy insurance and a warranty upon buying a house, but both can be added later if the cost is too much up front. Shop around and find the best coverage and price to suit your home and budget before committing to either type of policy.
OneGuard is one of the fastest-growing, privately-owned home warranty companies in America and is the market leader in Arizona with additional offices throughout Texas.
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