Home Warranty & Homeowners Insurance: What’s the Difference?

Learn the real difference between a home warranty & homeowners insurance.

While both a home warranty and homeowners insurance are great to have under your name and your home, they offer different types of protection. Be sure you know the difference between the two and why you should consider getting both.

Home Warranty

A home warranty is a service contract that provides cover, replacement, or repair of your components and systems that fail due to age, or standard wear and tear. This covers things like your kitchen appliances, washer/dryer, electrical appliances, and can even extend to your pool and spa. Let’s say that your fridge’s compressor stops working. A service contractor will visit your home and determine whether this is covered under your warranty. If it is, the repair will be done at the cost of only a service call (which is minuscule compared to the hundreds or thousands it could take to replace and install the fridge.) A warranty is, however, optional.

Homeowners Insurance

The insurance covers accidental damage done to your home and belongings due to natural disasters, fires, storms, and theft/vandalism. It usually covers the interior and exterior of your house, personal property in case of theft, loss/damage, and general liability if a person accidentally becomes injured while on your property. Let’s say a pipe breaks and completely floods your bathroom (and this time, it wasn’t your messy roommate’s fault). An insurance adjuster will visit your home and determine the deductible, which you must pay; the rest will be on the insurance company. This is usually mandatory as banks will require you to take out a policy before giving you the loan for your mortgage.


Neglecting the knowledge that is out there between a warranty and an insurance policy could lead to coverage gaps and unexpected out-of-pocket costs. Keep in touch with your Pierce Insurance Group agent and contact us today for an all-encompassing homeowners insurance policy in McKinney, Texas.