Home warranty vs. homeowner's insurance

Being a home owner is wonderful. You’ve got the peace of mind knowing you have a place to rest your head, entertain friends, and gather with family. But sometimes your home will require repairs, just like anything else, as well as require regular maintenance. To prepare for these repairs, it’s essential to have a plan in place. But how do you decide whether to buy a home warranty or acquire home owners insurance? AFC Home Club recommends having both because the protection they offer are different and both valuable. Here’s a look at some of the differences: What’s Covered by a Home Warranty? A home warranty is like an insurance policy in that we’re there when you need us most and we back up our work. Home warranty plans may help cover the repair or replacement of a broken appliance. Home warranties may also cover what the Federal Trade Commission (FTC) calls “limited coverage of workmanship and materials” for specific parts of the house in a new home. What’s not covered in a home warranty? Sometimes that means items covered under a manufacturer’s warranty. Give us a call at 1-866-242-0629 to discuss our coverage policies and what home warranty plan is best for you. What Does Homeowners Insurance Cover? While a home warranty may provide coverage for an appliance that’s stopped working, homeowners insurance covers you if someone steals your belongings or your home is damaged by fire? A typical homeowners policy helps protect the physical structure of a home as well as your personal property from covered events (also known as perils) such as theft or fire. However, homeowners insurance typically will not provide protection if, for instance, your air conditioner or other appliance breaks down or is defective. Homeowners insurance typically also comes with liability coverage which may help provide protection if, for example, you’re found legally responsible after a visitor is injured at your home. It’s important to note that coverage limits will always apply. A local insurance agent can help you determine whether you have enough protection in place should you experience a loss. A home warranty and a homeowners insurance policy offer different types of coverage that may give you peace of mind as you consider certain scenarios.To learn what your homeowners insurance policy may help protect — and what it may not — talk with your local insurance agent.

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