Homeowner’s Insurance and a Home Warranty Compared

When it comes to protecting your home, it’s important to understand the differences between homeowner’s insurance and a home warranty. Both offer valuable protection, but they serve different purposes and cover different types of risks. 

Homeowner’s Insurance 

Florida home - homeowner's Insurance

Homeowner’s insurance is a form of property insurance that covers losses and damages to an individual’s house and assets in the home. It also provides liability coverage against accidents in the home or on the property. 

Homeowner’s Insurance Coverage 

Dwelling Coverage: This protects your home’s structure, including the walls, roof, foundation, and attached structures, in case of damage from covered perils such as fire, windstorms, vandalism, or theft. 

Personal Property Coverage: This covers your belongings, such as furniture, appliances, electronics, and clothing, if they are damaged or stolen, even if the incident occurs outside your home. 

Detached Structures: This insurance also extends to other structures on your property, such as garages or sheds. 

Liability Protection: If someone is injured on your property or if you accidentally damage someone else’s property, liability coverage can help cover legal expenses, medical bills, and other costs. 

Living Expenses: If your home becomes uninhabitable due to a covered loss, this coverage can help pay for temporary accommodation, meals, and other necessary expenses while your home is being repaired. 


Maintenance Issues: Damage from poor maintenance, wear and tear, or slow leaks is generally not covered. 

Certain Disasters: Floods and earthquakes are typically not included but can be added for an additional fee. 

Learn more about homeowner’s insurance in our previous blog post, here!

Home Warranty 

Stove - Home warranty

A home warranty is a service contract that covers the repair or replacement of home appliances and systems that break down over time. 

Home Warranty Coverage 

Home Systems: This includes components such as electrical, plumbing, heating, and air conditioning systems. 

Appliances: Home warranties often cover major household appliances like refrigerators, ovens, dishwashers, washers, and dryers. 

Optional Add-Ons: Some home warranty companies offer optional coverage for items like pool and spa equipment, well pumps, and additional appliances not included in the standard plan. 


Structural Elements: Items like windows, doors, and the home’s foundation are not covered. 

Preventable Damage: If a system hasn’t been regularly serviced, the warranty may not cover it. 

Key Differences Between Homeowner’s Insurance and a Home Warranty: 

Coverage Scope: Homeowner’s insurance primarily protects against damage caused by unforeseen events or perils, while a home warranty covers the repair or replacement of covered systems and appliances due to normal wear and tear. 

Cost Structure: Homeowner’s insurance typically requires an annual premium payment, while home warranties operate on a yearly contract basis with an upfront or monthly fee, along with service call fees for each repair visit. 

Claim Process: Filing a claim with homeowner’s insurance usually involves contacting your insurance company, documenting the damage, and waiting for approval. Home warranty claims typically require contacting the warranty provider, who then dispatches a service technician to assess and repair the covered item. 

Exclusions and Limitations: Both homeowner’s insurance and home warranties have exclusions and limitations. It’s crucial to review the terms and conditions of each policy or contract to understand what is covered and what is not. 

Examples of When Each Coverage Applies 

Homeowner’s Insurance: If a tree falls on your home during a storm, causing structural damage and destroying belongings, homeowner’s insurance would cover the costs of repairs and replacement of items, minus your deductible. 

Home Warranty: If your air conditioning system breaks down due to normal wear and tear, a home warranty could cover the cost of repair or replacement, subject to the terms of your contract. 

Kitchen - covered by homeowner's insurance or home warranty?

Homeowner’s Insurance or a Home Warranty?

While both homeowner’s insurance and home warranties offer protection for your home, they do so in different ways. Homeowner’s insurance is designed to protect against unexpected events that cause damage to your home and personal property, as well as provide liability coverage. On the other hand, a home warranty covers the breakdown of appliances and systems due to wear and tear, which is not covered by homeowner’s insurance. It’s important to carefully review the terms, conditions, and exclusions of both types of coverage to fully understand what is and isn’t covered. In many cases, having both a homeowner’s insurance policy and a home warranty can provide the most comprehensive protection for your home. If you have any questions about what a homeowner’s insurance policy covers or what coverage might be right for you. Please do not hesitate to reach out to us here at Blanchard Insurance.  

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