Ultimately, we secure insurance to save us from worry in the present and expense in the future. Home insurance and home warranties both offer those gifts to their holders, but on slightly different fronts. While your home insurance will cover replacements and repairs for your home should you need them due to a specific cause (e.g. fire, theft), your home warranty will cover repairs and replacements for your home’s systems and appliances as they wear out over time.
To begin, let’s get a clear understanding on what most home insurance policies cover:
- Replacement of personal property
- Repairs needed on the interior or exterior of the home
- Alternative housing while your home is being restored
- Liability for damages you or your family cause
For your home insurance policy to kick in, the damages or losses need to have been caused by something covered in your policy. Usually, this includes storms, fires, and thieves. If you want to secure coverage for earthquakes or floods, ask your insurance agent if you can include those on your policy or if you will need a separate one.
A home warranty does not need a specific cause; the general wear and tear that happens over time is reason enough to engage your warranty. Usually, your home warranty will cover replacements and repairs for:
- Heating/Cooling Systems
- Electrical Systems
- Major Appliances
This information begs the question: do you need to have both a home insurance policy and a home warranty? Unless you feel that you would be able to pay for the cost of rebuilding your home and replacing all of your personal property without too much financial trouble, you will need home insurance. Some families secure a home warranty for the peace of mind and less hassle should they need the coverage, while others choose to set aside money to replace and repair their home independently.
Contact Gant Insurance Agency in McKinney, Texas, for all of your home insurance needs. Our experienced, dedicated team is here to ensure you get the coverage you need. Call us today!