What is the Difference between homeowners insurance and a home warranty?

Home insurance policy is a contract for compensation of damage of your home or your belongings arising a natural disaster, fire, or theft. This policy covers four key areas, namely, the exterior of your home, the interior of your home, personal belongings in events of loss, theft or damage, and general liability that may come up in case any person is injured when on your property. It is a mandatory policy, and any bank will require you to have it before discharging a mortgage on any home. This policy is renewed yearly. For example, if a pipe breaks and water floods your home, an indemnity adjuster comes to your home. The adjuster fills a claim form for any replacement or repair of any damaged objects in your home. The claim will be assessed, and when it is approved, the insurance firm will subtract the total of your deductible and pay you the balance to aid you in repairing your home. The deductible could also be used to lower your premium for the annual policy. The cost of your home insurance policy will be low if your deductible is high.

On the other hand, a home warranty is an agreement that caters for replacement or repair of home appliances and systems that fails due to wear or tear. This contract will cover appliances like air conditioners, plumbing, electrical, among others in your household. Large systems like a spa and swimming pool can also be covered under home warranty. We Believe that A home Warranty and home owners insurance go hand in hand and make a good duo. This gives you peace of mind knowing almost every aspect of your home is covered.  The contract is usually a twelve months term, a smart purchase, and an elective. For instance, if your air conditioning unit fails to work, a licensed technician or professional will be sent to assess the nature of the problem. If it is set that the failure arose from either tear, wear, or age, and the breakdown is covered under the agreement terms, the technician will do the repair. Home warranties can save a homeowner a lot of out-of-pocket money. It can also relieve the homeowner’s headache of looking for a trusted or skilled professional to do the repair. Things indeed happen, and appliances get damaged. Systems fail out of age. Rather than having to think of your malfunctioning AC unit or washer, it is recommended to have a home warranty contract with a firm accredited to do so. This will ensure that you get the professionals to perform any repairs on your systems and appliances whenever you need the service. You do not have to have the cash at the event of the failure or breakdown.

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