Home Warranty vs. Homeowner’s Insurance: What’s the Difference?
As a Texas real estate agent, I often get questions about the difference between a home warranty and homeowner’s insurance. Both provide valuable protection, but they cover different aspects of your home.
Homeowner’s Insurance is mandatory if you have a mortgage and protects your home against unforeseen events like fire, theft, vandalism, or natural disasters (e.g., hailstorms). It helps cover the cost of repairing or replacing your home and belongings in the event of a covered incident. For instance, if a tree falls on your house or there’s water damage from a burst pipe, your homeowner’s insurance would kick in.
Home Warranties, on the other hand, are optional service contracts that cover the repair or replacement of major home systems and appliances due to normal wear and tear. If your air conditioning fails, or your water heater breaks down, a home warranty helps offset the cost of fixing or replacing these items. It’s a great way to avoid unexpected repair bills for essential home components.
In short, homeowner’s insurance protects against sudden, unexpected events, while a home warranty covers breakdowns of home systems and appliances over time. Both can provide peace of mind, but understanding their differences ensures you have the right protection for your home.
If you’re buying a home in Texas, I’m here to help you navigate these options and make informed decisions!