What is a home warranty and does it cover the same thing as home insurance?
A home warranty and a home insurance policy are two different policies that offer different coverage for homeowners. A home insurance policy covers damages and losses to your home and it's contents due to covered claims such as wind, hail, fire, theft, etc. A home warranty can be purchased to offer protection for your home's major systems and appliances should they break down due to normal wear and tear.
Related Home Insurance FAQs:
- Why is the replacement cost so high? I didn't pay that much to buy it.
- What does my policy cover?
- After I renovate my home, do I need additional home insurance coverage?
- If my household appliances cause water damage does my home insurance cover that?
- What's the difference between replacement cost and actual cost value?