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What's the Difference Between Home Warranty & Homeowners' Insurance?

Owning a home can be extremely rewarding, but also extremely expensive. When something breaks, whether it’s an appliance or your roof, getting it fixed can be a huge burden both on your time and your wallet. However, you may be able to purchase a policy that will protect your home from these breakdowns, giving you financial relief for this cost rather than forcing you to deal with it yourself.

However, it’s important to remember that these two products have extremely different roles: they do not cover the same things, they don’t cost the same, and they have their own rules and limits that you’ll be subjected to. You should never rely on one to fill the role of the other. Let’s look at them in more detail to help you understand what each of them does.

Homeowners’ Insurance

Homeowners’ insurance is designed to cover your home as a whole. Should a huge wildfire destroy your home as it rips through your neighborhood, your homeowners’ insurance will help you rebuild your home and even replace some of what was inside and also lost in the disaster. Rebuilding a home can be immensely expensive, and thus, homeowners’ insurance is absolutely invaluable for protecting you. This can be used for everything from fixing a kitchen fire to fixing your roof if a tree branch falls on it, and much more. Because this policy can be so important, many lenders actually require you to carry homeowners’ insurance for the duration of your mortgage in order to protect their own investment.

Home Warranty

While homeowners’ insurance is designed to protect your home, a home warranty protects the important things inside. If your water heater breaks down and stops working, you might pay hundreds or even well over a thousand dollars to have it replaced with a new one. That’s a lot of money to have to fork over, especially if financial matters are tight. However, a home warranty will usually cover this, along with things like electrical breakdowns, kitchen appliances, washer and dryer, and even your air conditioner, and do for several additional years beyond when their manufacturer warranties expire. These policies often have strict rules for what is covered and what isn’t, which means you need to be careful and read the terms of any warranty before agreeing to pay for it.

If you need assistance filing a claim with your homeowners’ insurance company, let an experienced and qualified Miami insurance attorney help you! Call The Morgan Law Group today at (844) 818-0774 for a case evaluation.