Understand the differences between a home warranty and home insurance.
Owning a home is part of the American dream. Since it is likely to be one of your greatest assets (if not the biggest), it’s wise to protect it and everything in it. If you are bombarded with terms like ‘home insurance’ and ‘home warranty’ when you’re thinking of safeguarding your property, you’re not alone. Many homeowners get confused between the two terms, but it pays to know the differences.
A home insurance policy covers any accidental damage to your home and belongings due to theft, storms, fire, some natural disasters, and other perils listed in your policy. There are four primary areas covered under a home insurance policy: the interior and exterior of your home, personal property, and general liability that can arise when someone gets injured on your property.
Taking out a mortgage will often mean that the lender requires to you take out home insurance to protect the lender’s investment. A home insurance policy is renewed yearly, and you should always review it when your lifestyle and home changes so that it stays in line with your needs.
A home warranty is a service contract that provides repair and replacement for your systems and appliances that fail due to age and standard wear and tear. Generally, your HVAC components, electrical, plumbing, kitchen appliances, washer, and dryer are typically covered under this warranty.
Home warranties do not cover damage caused by malfunctioning systems or appliances. For instance, if a dishwasher was leaking, the home warranty company would help to fix the dishwasher, but would not pay to repair any water damage that was caused to the structure of the home because of the leak. The protection of a home warranty can potentially save you hundreds of dollars and the headache of finding a trusted service contractor to make the repairs.
Let’s face it – accidents happen. When they do, a home warranty and homeowners insurance can help to pick up the pieces. To help you get started on your quality coverage, contact C.V. Mason Insurance Agency in Bristol, Connecticut to get started.