The Beginner’s Guide to
The Difference Between Home Warranties and Home Insurance
If you have ever bought a house, you will realize that it is very exhilarating and costly. Thus why you need to protect it with home warranties and home insurance. Discussed herein are the difference between home insurance and home warranties and why you need them both.
First of all, lenders need home insurance. The reason why they need insurance is to protect their interests in the loans. One thing that you should understand is that there is no way you will buy a house with a loan and you don’t have insurance. In case borrowers don’t have home insurance, lenders will purchase one for them. This will also help in protecting your home after you pay off the loan.
The second thing about home insurance is that it protects your structure and personal belongings. One thing that you should understand that your home and belongings can be damaged by things such as fire, floods, and others. Thus where home insurance coverage comes in as the insurance company will compensate you for the damages. The other thing is to make sure that home insurance covers everything.
Apart from that, you should know that home insurance does not protect you in every way. Like home insurance does not protect you against normal tear and wear. For that matter, you will be responsible for the repairs and maintenance that your home needs.
Besides, a home warranty fills in the gaps. Where they will have to cover for the limitations of the home insurance policy. This includes repairs, maintenance, and replacements. Thus why you need both of them so that you are protected against everything.
Besides, you should know that home warranties protect your budget. You find that when the items that are covered in the home warranty are damaged, you will simply schedule an appointment with the home warranty company and they will fix it. Here you will only pay the service call and the entire bill will be covered by the home warranty company. This is beneficial because sometimes your items can be damaged when you don’t have the required amount to fix it.
The other thing with home warranties is that they are affordable. The thing is that you will pay a lot less for home warranty than home insurance. It is also best to know that certain factors will be used to determine the cost of your home warranty. Age of appliances and components, age of your home, how many appliances you have just to mention but a few of the things that will determine the cost.