Owning a property is not an in end in itself. A residential property for example may require some maintenance and safe-keeping. And what better way to ensure your home's long term security by having insurance. Aside from the idea of being secured, insurance is also helpful and necessary when dealing with mortgage transactions. However, most homeowners are sometimes confused with the idea of home-insurance and home warranty; others simply mixed up both concepts. In order to shed some light on the said confusion, here below are some basic concepts, as also discussed by redfin, which differentiate one from the other.
Home Warranty
According to redfin, a home warranty covers home systems which include but not limited to electrical system, heating and cooling, plumbing and appliances like your washer and even dryers. In sense it applies to the material object within your property. When a particular system or appliance breaks down, redfin suggests that you immediately contact your home warranty company in order to have a scheduled appointment with some contractors. The best part of it is that you would only pay for the service fee and the rest of the expenses would be covered under the home warranty contract. Of course, before getting started with a home warranty, you'll want to completely understand the specifics of what it includes. For example, you might want to know: does a home warranty cover a garage door. The answer is no, your home warranty won't cover the actual garage door or its tracks because they aren't appliances or systems. The garage door opener, however, is an appliances and, therefore, is covered by a home warranty, as are nine other appliances and 11 home systems. Check with your home warranty provider for a full list of what your plan covers.*
Home Insurance
Home insurance on the other hand covers primarily the structure of your home under a certain policy. This type of coverage may also include belongings damaged due to disasters like typhoon or earthquake. Depending on its clause, burglary may also be covered by the insurance policy. In brief, a home insurance covers any damages from within and the exterior of your property.
The main difference between an insurance and warranty lies on the things or objects it covers and process of indemnity. In order to be more accurate of the things that are covered by insurance or even a warranty, a wise homeowner should check their policies and contracts for clearer understanding and references. You may also consult real estate experts and insurance specialists for a detailed view and understanding of the concepts being discussed.
