How Home Warranties Are Different Than Homeowner’s Insurance

We’re often asked to define the difference between a home warranty and home insurance.  It’s a valid question and can certainly be confusing. Here’s a quick run down of the differences between the two products, and the reasons why it is important to have both in place in order to ensure you are completely protected.


If you own a home, then you most likely have a home insurance policy. That policy covers the actual structure of your house against natural disasters, fire or theft. Chances are that your policy also covers some of the more precious contents of your home as well.  If you’re in the market to refinance your home, you’ll notice that most banks require a valid home insurance policy before considering your application. If you’re just setting out to purchase a house, you should definitely account for the cost of a basic (but thorough) policy in your overall budget. The key to a home insurance policy is that it only covers your house (and contents) in the event of a disaster, and will not provide any coverage for breakdowns of appliances or systems from age or normal use.


However, a good home warranty policy covers repair and replacement for your plumbing, electrical, heating and cooling systems and most of your major appliances in the event of a mechanical failure. Unlike a home insurance policy, a home warranty policy is not required by banks or mortgage companies, but it is an invaluable option designed to save you from the hassle of having to deal with exorbitant costs in the event of an unexpected breakdown.


The best possible scenario is to have both policies in place. The addition of a warranty policy will give you peace of mind knowing that you have just one call to make and a low deductible to pay for the covered items and repairs in your house1.  Here at TotalProtect® we offer a wide range of policies designed to repair and replace major appliances, heating and air conditioning, electrical systems and plumbing. Our warranty policy also saves you the time and hassle of finding skilled professionals: We have a nationwide network of more than 40,000 prescreened, qualified service technicians. The low monthly cost of a TotalProtect Home Warranty can ultimately save you thousands.


If you’re a homeowner looking to save time and protect your home against a variety of incidents, take a look at adding the coverage that only a home warranty policy can provide.


The information in this article is intended to provide guidance on the proper maintenance and care of systems and appliances in the home. Not all of the topics mentioned are covered by our home warranty or maintenance plans. Please review your home warranty contract carefully to understand your coverage.