What Does a Home Warranty Typically Cover?

When it comes to financially protecting your home, understanding the difference between a home warranty and home insurance is crucial. While both offer valuable coverage, they serve distinct purposes and can complement each other to provide financial protection for homeowners.

What Does a Home Warranty Typically Cover?

A home warranty is a service agreement that provides coverage for repairing or replacing key home systems and appliances when they fail due to regular use. Typically, a home warranty covers the following:

• HVAC systems—This can include your heating, ventilation and air conditioning systems.

• Electrical systems—Coverage often includes your main electrical panel, wiring and outlets.

• Plumbing systems—This can cover everything from your pipes to your water heater.

• Major appliances—Items such as refrigerators, dishwashers, ovens and washers/dryers are usually covered.

Home warranties are particularly beneficial for homeowners with older appliances and systems, as they can help manage the costs of unexpected repairs or replacements.

How Does a Home Warranty Compare to Home Insurance?

Home insurance can help offer financial protection against damage to your home and personal belongings from specific perils, such as fire, theft and severe weather. It typically includes the following:

• Dwelling coverage—This can help financially protect the structure of your home.

• Personal property—This can help financially cover your belongings inside the home.

• Liability protection—This can help cover legal expenses if someone is injured on your property.

• Additional living expenses—This can help cover the cost of living elsewhere while your home is being repaired.

While a home warranty covers the mechanical aspects of your home, home insurance covers structural damage and liability issues. Mortgage lenders usually require home insurance, whereas a home warranty is optional.

Learn More

For homeowners insurance near you, contact Pride Insurance Agency.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.