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Home Warranty or Home Insurance—Do I Need Both?

Home Warranty or Home Insurance—Do I Need Both?
Written by Christina Moore

When buying a home for the first time, you may have some warranties included on new items.

Looking at Protecting Your New Home

Purchasing your first home is a big step for individuals. Once you find that perfect place to call your forever home, protecting your investment is forefront in your mind and can make you anxious that you will do everything right in the buying process.

There is no question that looking at home insurance and home warranties will be an important part of the buying process, but do you know what the difference is between a warranty and insurance or if you need them both?

Every bank will require homeowner’s insurance when you buy, but they do not require you to have a TotalProtect Home Warranty. However, a home warranty can be valuable to you and will keep your appliances in good working order. Learning how to best protect your new home is important for the buying process.

However, a home warranty can be valuable to you and will keep your appliances in good working order. Learning how to best protect your new home is important for the buying process.

What Kind of Protection is Needed

As you are learning what types of protection is needed to cover your whole home, you need to understand the difference between home insurance and home warranty. Home insurance is not only important, but it is also required to get a mortgage.

This protects the lender and the buyer. Home insurance covers your home against damaging weather, theft, fire, and other unexpected events. It will not cover everything, but it does help to minimize the out of pocket cost when emergencies occur. The catch phrase is an emergency.

If you have a slow leak that is found after the damage becomes a noticeable problem, it may not be covered, but if you have a pipe burst unexpectedly then the damage could be covered. The specific policy you buy will determine the exact coverage you get, but home insurance is not designed to cover certain components, such as HVAC and appliances. This is true no matter how much insurance you buy.

Home warranties, on the other hand, is the complete opposite. It is designed to cover systems and appliances that are in the home. If your washer breaks and floods your home, insurance will not cover the washer, but the warranty will. The warranty will not cover the water damage, but the insurance will. The warranty covers all the systems in your home, but there is a catch.

You must make sure to provide regular maintenance to your systems and appliances for them to be completely covered. According to Identity Magazine performing regular upkeep of your home systems will also help with other issues that homeowners face like slow leaks, pests, and mold. If you do not do the proper upkeep, insurances and warranties may think twice about covering any damages.

As a new homeowner, warranties are nice to have. Many new homeowners do not know the ins and outs of product repairs. Home warranties take that worry away by giving you the peace of mind to always know that you have a plan if something breaks.

Home warranties also help find a repairman that is certified to work on your home. Many already have a pool of companies that they work with and are able to provide quick, convenient service.

Should You Spend The Extra Money for Peace of Mind?

When buying a home for the first time, you may have some warranties included on new items. Consumer Reports explains that buyers need to know what warranties they already have when they buy. If buying new systems and appliances, sometimes credit cards offer extended warranties, or you can buy warranties when you purchase appliances.

If systems and appliances come with the home, then you need to understand the cost of replacements and compare that with the costs of the warranty to make sure you get the most for your money. See if any of the systems or appliances have a warranty if they come with the house.

If the appliances are used, check to see if the old warranties are transferable. This will help you know if a home warranty will be the right choice. Also, compare home warranties to get the best one for you.

Identity Magazine is all about guiding women to discover their powers of Self-Acceptance, Appreciation, and Personal Achievement.

We ask that every contributor and expert answer the Identity questions in keeping with our theme. Their answers can be random and in the moment or they can be aligned with the current article they have written. In that way, and as a team, we hope to encourage and motivate each other, thus inspiring you to Get All A’s.

1. What have you accepted within your life, physically and/or mentally? What are you still working on accepting?

That we have to all appreciate the little things and to not take anything for granted.

2. What have you learn to appreciate about yourself and/or within your life, physically and mentally? What are you still working on to appreciate within yourself and/or life?

I’m blessed to have loving family and friends in my life.

3. What is one of your most rewarding achievements in life? And what makes YOU most proud? Any goals and dreams that you still have?

Graduating from Arizona State University in 2013

Photo by Gus Ruballo on Unsplash

About the author

Christina Moore

Christina Moore is a part time blogger and full time adventurer! Originally from the east coast, she now resides in San Diego. If she's not writing you can find her on the beach soaking up the sun.

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