Because your home is likely your biggest life investment, it is important to protect that investment. When considering financial protection in the form of insurance coverage, the two main ways homeowners financially protect their home is by getting covered coverage with a home insurance policy and getting a home warranty plan. When making the decision to get coverage, it is important to understand home warranty vs home insurance.
What is home insurance and what does it cover?
Home insurance is insurance you purchase when you buy a home. Most mortgage lenders normally require a minimum amount of homeowners insurance because it reduces the risk of default if an expensive unit or system is damaged. This means mortgage payments will remain affordable. Homeowners insurance provides coverage for damage and loss as the result of such events as:
Theft and vandalism
Tornadoes, hurricanes or earthquakes
Floods, fires, windstorms, lightning, hail or failing objects like a tree
Personal property
Liability claims from third-party injuries that take place on your property
Living expenses if your home is deemed uninhabitable
The home insurance provider will provide coverage for replacing or rebuilding the damaged and lost items. This insurance will help to pay for structural damage and loss of personal belongings from covered emergencies. Home insurance does not pay for damage such as an appliance that suddenly stops working, but not due to any of the terms and conditions in the home insurance policy. Discover peace of mind by obtaining the perfect insurance for your needs through Westland Insurance, where you can explore a range of options including Ontario home insurance to ensure comprehensive coverage for your home.
What is a home warranty and what does it cover?
A home warranty is a plan that financially protects homeowners from unexpected repair and replacement costs for appliances and home systems that would not normally be covered under home insurance or manufacturer’s warranty. It is coverage for unexpected repair bills due to normal wear and tear, and the age of the item. A home warranty protection plan can include, but is not limited to, major appliances, devices, and systems such as:
Central air conditioning and heating
Interior electrical
Plumbing
Water heater
Range/Oven/Cooktop
Refrigerator
Dishwasher
Washer and Dryer
Garage door opener
Ceiling fans
And more.
There are structural warranty providers that also offer add-on coverage for plumbing, interior electrical, water/sewer lines, central heating/cooling, well pumps, electronics, and much more. Home warranties provide protection no matter the age of the appliance, device, or system. You can also find customized warranty plans and bundled plans.
Home Warranties are optional, and provide protection against unexpected repair costs and replacements for your appliances, devices, and home systems that would not normally be covered under a manufacturer’s warranty or homeowner’s insurance. When you have home insurance, you may find it very beneficial to get a home warranty plan. Together, they reduce financial risk since they cover different areas which results in comprehensive home protection coverage.
Basically, a home warranty plan can cover certain exclusion gaps in a home insurance policy in order to reduce financial risk. Both home insurance and home warranties can lessen the financial burden of homeownership.
