If you are a homeowner, you likely want to protect your home and valuables. You may have heard of home warranties and home insurance and wondered if you need to have both of them. Perhaps you have homeowner's insurance and want to know if adding a home warranty is a good idea or whether you should let your insurance lapse and opt for a home warranty. These home protection options may be seemingly alike at first glance. However, it is imperative to understand that home insurance is a requirement in many cases and is the better option for most when the two product types are closely compared. The following points represent things that home insurance offers that home warranties do not.
Complete Coverage
Home insurance outshines warranties because it covers belongings and the home structure. Warranties tend to focus on the things that the homeowner has in the home with a heavy concentration on appliances. This might be a good consideration if there are appliances that are nearing the end of their manufacturer warranty dates or have expired extended warranties. However, warranties do not cover certain things that could apply to appliances. If items covered by a home warranty are stolen, vandalized, or damaged by fire, they are usually not covered by warranty. However, a home insurance policy can provide coverage and potentially replace items. Home insurance policies also protect the physical home structure.
Legal Requirements
You are legally required to have insurance on your home if you have a mortgage. This is something that must be understood because there is not a choice of warranty or insurance. However, you can have both if you choose to. Your mortgage agreement should outline the insurance requirement and you could not have gotten your home without proof of insurance.
Injury Protection
No one wants to think of someone getting hurt on their properties, but it can happen. This is why it is ideal to have an insurance policy. It can ensure that you do not find yourself in civil court if someone is injured on your property. A warranty does not provide protection against these types of mishaps.
A home insurance broker is a good resource to use to compare insurance policies. They can determine the best coverage option based on your budget and other factors. For many homeowners, affordability is a significant concern. Brokers and agents may be able to help you save money in a number of ways. One common option is consolidating different insurance types. This is ideal for individuals who may need different types of insurance such as auto and home.
For more information about home insurance, contact a home insurance provider.
Share20 November 2020
I still remember the first time I had to chose an insurance policy; I was 17 years old and had just saved up enough money to afford my very first car. I was so excited to begin driving, but overwhelmed with all of the different auto insurance options. My father helped me chose a full-coverage policy that would cover the cost of my car if it were to become damaged in an accident. When I inevitably caused a small fender-bender as a new driver, my insurance company paid for my car repairs, so it sure was the best policy for me! Now that I am older and have learned a lot about home insurance and other types of insurance, I thought I would make a blog to help others who need insurance advice, like what my dad gave me. I hope I can help you make wise insurance decisions!