Navigation
HomeHQ
Home HQ
Learn More Call 1-877-295-3422

What is the difference between home insurance and a home warranty?

A home insurance policy and a home warranty cover very different things.

Home insurance and home warranties are both designed to help you in the event that you experience a loss or damages to your home and/or your belongings. A typical home insurance policy covers many things including the structure of your home, your personal belongings, and other structures on your property if damage or loss is caused by a covered peril.

A home warranty, on the other hand, offers repairs and replacements for your covered home appliances and systems only that fail due to normal wear and tear - which a homeowner's insurance policy does not. A home warranty is a contract, not a policy.

Let's look at a few examples:

Claim
Coverage

A hail storm rips through your community and causes damage to your roof.

Homeowners Insurance. A standard homeowner's policy covers damages caused by hail for the structure of your home.

You wake up one morning and find your central AC has stopped working due to normal wear and tear.

Home Warranty. A home warranty typically provides coverage for air conditioning units and other home appliances/systems if they fail due to normal wear and tear.

A cooking fire in your kitchen damages the walls and ceiling in your kitchen.

Homeowners Insurance. A standard homeowner's policy covers damages caused by fire to the structure of your home.

Your oven stops working.

Home Warranty. A home warranty typically provides coverage for a range/oven/cooktop and other home appliances/systems if they fail due to normal wear and tear. They must be in working order before the contract is purchased.

A wind storm blows a tree limb through your living room window.

Homeowners Insurance. A standard homeowner's policy covers damages caused by wind to the structure of your home.

You find your furnace is no longer working.

Home Warranty. A home warranty typically provides coverage for heating systems/furnaces and other home appliances/systems if they fail due to normal wear and tear.

Another way that homeowner's insurance and home warranties are different is a homeowner's insurance policy carries a deductible and has variable rates. For example, you may have a $1,000 deductible on your homeowner's insurance policy which means that in the event of a covered claim you would have to pay $1,000 out of pocket before the insurance company would begin paying for damages. Also, your rates could increase from one policy term to the next. Typically after filing a claim, or multiple claims, your insurance premiums will increase to some extent.

A home warranty, however, does not typically carry a deductible but a service charge every time a service professional comes to your home. For example, let's say your hot water heater breaks due to normal wear and tear and you file a claim with your home warranty company. You will be required to pay the stated service charge on your contract at the time of service for the repair person's visit. However, if covered, your home warranty company would then pay the remaining costs to replace or repair the hot water heater (check contract limits). Usually, your annual premium for a home warranty does not increase when you file a claim, but can increase from year-to-year due to service cost increases and other factors.

For more information visit:

For home warranty coverage and quotes

We recommend HWA Home Warranty
View Plans Now!

Why Choose HWA?

HWA has been in business since 1996, and a leader in the home warranty industry. They provide high value and protection against the ever-increasing cost of home system and appliance repair. Compare their plans to others, and you'll find HWA covers more for less. Plus, you'll have their nationwide service network to rely on and positive, helpful customer service staff. Get the Orange Company! They're your best defense against the unexpected.

HWA offers various plans, many options and premium coverage to customize a package to fit your needs. They are the first and only home warranty company to offer a truly green option, GreenPlus, which replaces covered equipment with ENERGY STAR qualified products.

Get Coverage starting at $24.95/month- View Plans Now!

Last Updated: July 15, 2009

Have other questions about home insurance or how to get started? Want to speak with one of our licensed agents? Give us a call at 1-877-295-3422 and let us get started on your quote today!

More Frequently Asked Questions About Homeowners Insurance

Call now and speak to a licensed agent to receive a quote from one of our partners: 1-877-295-3422