Home Insurance and a Home Warranty
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Why You Might Need Both Home Insurance and a Home Warranty

Becoming a homeowner is an important milestone and a goal for millions of people, but owning your own home also comes with a host of responsibilities. One of the primary areas you’ll need to focus on right away is how you plan to protect your home. There are different ways to do that, including home warranties and home insurance. For those who are new to homeownership, it can be difficult to understand what the differences are and what the best choice is for your individual situation. Read on to learn more about whether you need home insurance, a home warranty, or both.

What’s the difference between home insurance and a home warranty?


Before making a decision about what to purchase, it’s important for you to understand the differences between home insurance and a home warranty. Home insurance is a policy that typically covers damage sustained in emergency situations. Common areas of coverage include theft, storms, fire, and some natural disasters. This kind of coverage is designed to protect homeowners from the exorbitantly high costs of repair in the event of an unexpected situation. A home warranty, in contrast, is essentially a contract you make with a service provider to handle the repair and maintenance of various home systems and appliances that you own. A warranty ensures that you won’t be surprised by a massive bill if something breaks down or needs to be replaced.

When purchasing any kind of protection plan, the quality of the brokerage firm, lender, or home warranty company you use matters. Look for companies like America’s 1st Choice Home Club that offer benefits like the ability to choose your own technician and submit a service request 24/7. AFC also boasts Better Business Bureau (BBB) accreditation and a number of other member benefits. Make sure you understand the coverage and exclusions of any home protection and don’t be afraid to reach out and ask questions before you make a decision about committing to a plan.

Why should you invest in both insurance and a warranty?


If you have a number of systems and appliances that could be vulnerable to breaking down, a home warranty can save you a lot of money in the long run. If you’re someone looking for renovation ideas to keep in mind or who wants to invest in their home, it just makes sense to include investing in protecting your property from damage and your home systems and appliances from breaking down. Not only that but having immediate access to report a problem and schedule an appointment with a technician to fix it is a huge benefit for any family. Appliances like dishwashers, heating systems, garbage disposals, sinks, air conditioners, ice makers, and septic systems are just a few examples of the types of products that are usually covered by a home warranty.

On the other hand, home insurance is beneficial because it gives you peace of mind in case an emergency should occur. If you live in a location that is at higher risk for extreme weather, it’s even more important to make sure you have a high-quality home insurance policy in the event of an emergency. The specific events that a home insurance policy is designed to protect you from can cause extremely high costs to repair the damage to your appliances, fixtures, and the structure of the home itself. While insurance and warranties are distinctly different, together they protect you and your home from being blindsided by the cost of repairs or renovations.

Home warranties and home insurance each provide a different type of home protection, and it’s essential that you understand the pros and cons of each one before you decide which services you want to purchase for your home. Most companies offer the ability to get a price quote to have a contractor perform a home inspection free of charge, so it’s a good idea to take advantage of the opportunity if you’re still on the fence. Ultimately, a warranty or insurance plan can help you avoid being on the hook for significant and costly repairs and protects any investments you’ve made via home renovation. If you want protection from both emergencies and problems that can arise from routine wear and tear, your best bet is to invest in both home insurance and a home warranty.



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