As a homeowner, your home is bound to require occasional maintenance or an expensive replacement, which is why you need homeowner insurance or a home warranty that will help provide protection. However, the tricky part is deciding which one of the two policies you would be interested in pursuing.
Home Warranty vs. Homeowners Insurance
A home warranty is an optional service contract that protects your home appliances and systems through discounted repair and replacement services. Basically, it is a precautionary measure against expensive and unforeseen home repairs or expenses.
Homeowners insurance, on the other hand, isn’t optional, unlike a home warranty. In fact, homeowners insurance is a requirement with most mortgage lenders before taking out a home loan. It is property insurance that protects your home structure and personal property from loss or damage caused by a natural disaster, theft, or an accident.
Home Warranty Coverage
Now that the difference between both insurance plans has been made clear, it is important to know what they both cover. While a home warranty’s coverage limit varies by home warranty companies and their offered plans, a home warranty still essentially covers appliances and important home systems, like your HVAC system. Some of the appliances and systems covered by the home warranty include air conditioning and air conditioning system, HVAC system, refrigerator, dishwasher, trash compactors, heating and electrical system, plumbing system, water heater, garbage disposal, ductwork, oven, range, and cooktop, built-in microwave, washing machine and dryer, garage door opener, smoke detectors, ceiling fans, freestanding ice makers, and pool and spa equipment.
Homeowners Insurance Coverage
Each coverage for your homeowners’ insurance is insured up to a limit on your policy declarations page and a standard homeowners insurance policy includes the following:
Home Structure: This policy covers not only your house structure but also other structures not connected to the house, like the garage or tool shed. It is also sure to pay for repairs or rebuild in the case of your home being damaged by a “covered” hazard.
Personal Belonging: The policy is guaranteed to cover the expenses for damage to your personal property either from theft or destruction from insured disasters.
Liability Protection: This covers you against lawsuits for injury or property damage that you, your family, or pet(s) might have caused to other people. There’s also a no-fault medical coverage which covers the medical expenses of a guest injured on your property.
Additional Living Expenses: In the case of your home being uninhabitable due to an insured disaster and you have to live away from your house for a while, this policy covers your hotel bills, meals, and other living expenses.
Get the right insurance policy today to ease your mind and protect your budget. For assistance with all your insurance needs, contact the experts at Pierce Insurance Group today. We are ready to help you with all your coverage needs and questions.