Understand the differences between a home warranty and an insurance policy.
Owning a home is likely to be one of the greatest assets you’ll ever have. Protecting this investment is not just smart, it’s integral. The best way to do this is to purchase both a home insurance policy and a home warranty. Purchasing both will cover your home, personal possessions, appliances, and system components in case they need to be repaired or replaced. To understand the difference between the two, read on.
A home warranty is a service contract that provides coverage for repair and replacements of your system components and appliances that fail due to age and standard wear and tear. For example, components of your HVAC, electrical, and plumbing, kitchen appliances, washer, and dryer are typically covered under this warranty. Home warranties end to have a 12-month contract, and are not mandatory. When you purchase these items brand new, taking out a home warranty can protect your investment should something go wrong.
Home insurance covers any accidental damage to your home and belongings due to uncertain events such as fire, theft, vandalism, and certain natural disasters. It also provides liability protection that helps to safeguard you from lawsuits in the event that someone is injured on your property. A home insurance policy is usually mandatory, and a bank will generally require you to obtain one before allowing you to take out a mortgage.
Home insurance will only ensure your personal items in case they are stolen or ruined in a disaster. Repairs and replacements due to wear and tear are not covered.
Life happens and things break. With a home warranty, you can keep your electrical and home systems up and running. With home insurance, you can protect your largest investment.
To find the best home insurance policy to fit your needs, contact Bell Black Insurance today! We serve all insurance needs for those in Idaho Falls, Island Park, Driggs, Victor, Swan Valley, Ashton, and the neighboring communities in Idaho, as well as Jackson and Star Valley in Wyoming.