Sep 14, 2017

Home Warranty Plan VS Home Insurance Policy: What’s The Difference?

Insurance Policy


Congrats, you are one of the 74 million Americans that are proud owners of a house. Owning a home is a major investment that can be exciting and stressful at the same time. Protecting your assets in your investment is not only smart, but it’s also essential. Purchasing BOTH a home warranty plan and home insurance policy is the most practical move, but what’s the difference?

What is a home warranty?

A home warranty is a service contract that offers repairs or replacements on your appliances and systems. If your dishwasher or washing machine breaks down due to wear and tear, your home warranty plan will have you covered. When the HVAC, plumbing or electrical system in your home begins to fail, you’ll rely on your home warranty plan to replace or repair them.

Your home warranty plan offers trusted, professional service contractors for the appliances and systems in your home. Depending on your coverage and the terms you select when you buy your plan, you’ll potentially save thousands of dollars a year. Households utilize their systems for electricity, plumbing and HVAC. They also consistently use major appliances that keep a house efficient. Replacements and repairs are required over time, which is why it is important to have a home warranty to cover you for those unwanted surprise costs.

What is a home insurance policy?

A home insurance policy covers accidental damage to your home and personal items inside your home. Natural disasters, fires, storms, theft – these are all things that could potentially destroy a home. These are just a few of the things your homeowner’s insurance will cover.

Let’s say a storm damages the exterior of your home. An insurance adjuster will be sent to take your claim. They will assess the damage to your house and create that claim for replacements and repairs. The insurance company then deducts the amount of your deductible and sends you a payment for the balance to make those repairs.

Why do I need a warranty AND insurance?

Acquiring both of these protection plans will give you a blanket of coverage that encompasses your entire household and the contents inside.  After all, this is your home and your largest investment. Protecting it with optimum coverage from all sides gives you and your family peace of mind.

Read more: What Is A Home Warranty and Understand Your Home Warranty

About Fixd Repair
Fixd is an innovative mobile application and home warranty solution that is transforming the way homeowners file warranty claims, connect with service professionals, and schedule non-warranty home services. Fixd leverages modern technology to provide a superior home warranty service and on-demand experiences for customers.