Home Warranty or Home Insurance

January 11, 2022
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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.

Home Insurance

Homeowners insurance pays for any accidental damages and loss that are caused by fire, lightning, windstorm, hail and other perils. Quakes and flood are not covered unless specifically endorsed. Homeowners policies usually range from $800-$1500 per year.

Home Warranty

A home warranty is designed to cover the cost of repairs and replacements of larger household appliances due to mechanical breakdown and wear and tear. This includes but isn't limited to HVAC, electrical and plumbing components, dishwashers, water heaters, washers and dryers. With a home warranty, you are required to pay premiums year around. 
Some homeowners insurance policies will also provide a "mechanical breakdown" endorsement that will cover some of these warranty type issues, but these endorsements are typically expensive and the home insurance policy is not ideally designed to be a "repair" policy, but rather and emergency large protection form. 
Do your homework in any case and be thorough. Your hometown agent can assist you and answering questions relating to both.

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