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The Difference Between a Home Warranty & Home Insurance

Wednesday, March 4, 2020   /   by Shannon Eagan

The Difference Between a Home Warranty & Home Insurance

When purchasing a new home, it’s important to do in-depth research on all facets of the homebuying process. One thing you’ll need to understand is how to best protect yourself and your investment if anything were to go wrong. Check out the information below on home insurance versus a home warranty to educate yourself on your options.


Home Insurance

Homeowners insurance pays for any accidental damages and loss that are caused by fire, lightning strikes, windstorms, and hail. However, damage from earthquakes and floods is typically not covered. It also covers the replacement of personal property in case of theft or damage and liability if a person were to get injured in your home or on your property.

According to American Home Shield, the average annual cost of a homeowner's insurance policy ranges between $300 and $1,000, and the bank usually asks you to obtain a policy before the mortgage is issued.

Make sure to keep in mind that each type of coverage in the policy is subject to a limit and, in most cases, you will have to pay a deductible. 


Home Warranty

A home warranty is designed to cover the cost of repairs and replacements of larger appliances and crucial systems in your home that may fail or break due to age and wear and tear. This includes, but isn’t limited to HVAC, electrical, or plumbing components, kitchen appliances, and your washer and dryer.

With a home warranty, you are required to pay premiums year-round, even if you do not use it. They also won’t cover damages if appliances were not maintained properly, or if the damage is from a fire or other disaster.
Yancey Realty LLC
Franklin Yancey
2108 S. Blvd Suite 118
Charlotte, NC 28203
704-577-9055

Based on information submitted to the MLS GRID as of 8/5/2021 4:08 PM CST. All data is obtained from various sources and may not have been verified by broker of MLS GRID. Supplied Open House Information is subject to change without notice. All information should be independently reviewed and verified for accuracy. Properties may or may not be listed by the office/agent presenting the information. Some listings have been excluded from this website.
Information Deemed Reliable But Not Guaranteed.
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