A home warranty fills in the gap when it comes to covering the cost of repairs or replacements for aging systems and appliances that break down due to normal wear and tear. Here’s how home warranties protect what home insurance typically doesn’t:

Coverage Scope:

Home Insurance: Home insurance primarily covers damage to your home and personal belongings due to perils like fire, theft, vandalism, natural disasters (e.g., hurricanes, earthquakes), and personal liability (e.g., someone getting injured on your property). It’s focused on sudden and unexpected events.

Home Warranty: A home warranty, on the other hand, covers the repair or replacement of major systems and appliances in your home, typically due to normal wear and tear. These include items like HVAC systems, plumbing, electrical systems, kitchen appliances, and more.

Perils Covered:

Home Insurance: Home insurance deals with perils such as fires, theft, natural disasters, and accidents. It doesn’t cover the breakdown of systems or appliances due to normal usage.

Home Warranty: Home warranties protect you against the breakdown of covered items resulting from everyday wear and tear. If your refrigerator stops working or your air conditioning system fails due to age and usage, a home warranty may cover the repair or replacement costs.

Cost of Repairs:

Home Insurance: Home insurance typically covers sudden, unexpected, and catastrophic events. It may cover the cost of rebuilding your home or repairing damage caused by covered perils. However, it usually won’t cover the repair or replacement of aging appliances or systems.

Home Warranty: Home warranties are designed to address the cost of repairing or replacing covered systems and appliances when they fail due to normal wear and tear. Homeowners pay a monthly or annual fee and a service call fee when they need a repair technician to visit.

Duration of Coverage:

Home Insurance: Home insurance is usually an annual policy that you renew annually. It covers specific perils during the policy period.

Home Warranty: Home warranties often have shorter terms (typically 1-2 years) and can be renewed as desired. They focus on covering the lifespan of appliances and systems.

Complementary Coverage:

Homeowners often choose to have both home insurance and a home warranty to provide comprehensive protection. Home insurance handles sudden perils, while a home warranty addresses the wear and tear on everyday systems and appliances.

In summary, home warranties protect against the breakdown of home systems and appliances due to normal wear and tear, which is not covered by home insurance. Together, these two types of coverage can provide homeowners with a more comprehensive safety net, ensuring that both sudden perils and the maintenance of essential home components are adequately addressed. However, it’s essential to carefully review the terms, coverage limits, and exclusions of both policies to understand their respective protections fully.