Home Insurance v. Home Warranty

Dated: May 31 2020

Views: 233

When purchasing a new home, it’s important to do in-depth research on all facets of the homebuying process. One thing you’ll need to understand is how to best protect yourself and your investment if anything were to go wrong. Check out the information on home insurance versus home warranty below to educate yourself on your options.

Home Insurance

Homeowners insurance pays for any accidental damages and loss that are caused by fire, lightning strikes, windstorms, and hail, however, damage from earthquakes and floods is typically not covered. It also covers the replacement of personal property in case of theft or damage and liability if a person were to get injured in your home or on your property. According to American Home Shield, the average annual cost of a homeowner's insurance policy ranges between $300 and $1,000, and the bank usually asks you to obtain a policy before the mortgage is issued. Make sure to keep in mind that each type of coverage in the policy is subject to a limit and, in most cases, you will have to pay a deductible.

Home Warranty

A home warranty is designed to cover the cost of repairs and replacements of larger appliances and crucial systems in your home that may fail or break due to age and wear and tear. This includes but isn’t limited to HVAC, electrical, plumbing components, kitchen appliances, and your washer and dryer. With a home warranty, you are required to pay premiums year-round, even if you do not use it, and it won’t cover damages if appliances were not maintained properly or if the damage is from a fire or other disaster.

Latest Blog Posts

5 Super Saving Green Upgrades

Going green is great for the environment, but that’s not the only benefit. When you make green upgrades in your home, it can also lead to some major savings. Check out these investment options

Read More

Helpful Hints For Buying A New Condo From A Developer (Tara Mortgage Services Featured Blog)

2021 is greeting us with a surge of new constructions, especially condos. With the promise of amenities like swimming pools, a communal clubhouse, and done-for-you landscaping, buying a new condo

Read More

5 Ways to Promote Muscle Restoration

It’s commonly believed that the key to reaching your fitness goals is training as hard as possible; but while giving your all is important, it’s only half of the equation for workout

Read More

Tips for Hiring a Home Inspector

Home inspection is an important part of the home sale process, both for buyers and sellers. When it’s time for you to hire an inspector, here are five things you should be thinking about:1. It

Read More