Home Owners vs Home Warranty

Homeowners Insurance vs. Home Warranty: What’s the Difference and Do You Need Both?

When it comes to protecting your home, many homeowners wonder about the differences between homeowners insurance and a home warranty—and whether having one, the other, or both is best. At Camargo Insurance, we aim to help you make informed decisions, so here’s a breakdown to help you understand these options.

Homeowners Insurance: Essential Protection for Major Risks

Homeowners insurance is designed to protect your home, personal belongings, and liability in case of unexpected events like fire, theft, or a storm. Your policy covers:

• The Structure of Your Home: It pays for repairs or replacement if your home is damaged due to events like fire, lightning, or windstorms.
• Personal Belongings: Items such as furniture, electronics, and clothing are covered if they're damaged or stolen.
• Liability Protection: If someone is injured on your property, your insurance covers legal expenses and medical bills.
• Additional Living Expenses: If you need to live elsewhere temporarily due to covered damage, your policy can help cover those costs.

While homeowners insurance provides vital coverage for your home, it does not cover routine wear and tear or mechanical breakdowns of appliances or systems.

Home Warranty: Protection for Systems and Appliances

A home warranty is a separate service contract that can help cover the cost of repairs and replacements for specific appliances and home systems that break down due to regular use. Commonly covered items include:

• Home Systems: Plumbing, heating, air conditioning, and electrical systems.
• Appliances: Kitchen and laundry appliances like your dishwasher, refrigerator, and washing machine.

While a home warranty won’t cover structural repairs or damage due to natural disasters, it’s useful for unexpected repair costs due to normal wear and tear, especially if you have older appliances or systems.

Why Both May Be Useful

Many homeowners find that having both homeowners insurance and a home warranty provides peace of mind by covering different aspects of home protection:

• Homeowners Insurance: Essential for protecting against unexpected events and liability.
• Home Warranty: Helps with the costs of maintaining and repairing systems and appliances.

Since each serves a unique purpose, having both offers comprehensive coverage for your home and valuable protection for your investment.

We’re Here to Help

At Camargo Insurance, our goal is to make understanding coverage options simple and straightforward. If you have questions about your current homeowners insurance policy or want to know more about whether a home warranty might be right for you, feel free to reach out. We’re always here to help ensure your home is protected in every way.