Home Warranty Vs. Home Insurance

​Home Warranty and Home Insurance help homeowners save money for high repair expenses, but how can one know the difference? Learn the difference between the two by reading the guide below.

What Are The Pros And Cons Of A Home Warranty?
Home Warranty is not an insurance. It may only cover repair and replacements caused by wear and tear. Some repairs are excluded in the contract, so homeowners should read the contract thoroughly to know its exclusion and limitations. Here are some of the pros and cons of a home warranty:

Pros:

• It covers built-in systems and appliances caused by wear and tear.
• It gives peace of mind that if something happens, a professional will fix it.

Cons:

• It excludes some repairs.
• It mostly covers repairs rather than replacement. (which may cost more expenses shortly)
• It covers repairs more than a homeowner needs. (which will cost a little more money)
• For renters, the home warranty policy must belong to the owner, meaning it will not protect the renters from their loss.

Is It Wise To Invest Money In Home Warranty?
A home warranty may solve some of the homeowner's problems, but it's not perfect insurance. However, the homeowner decides to invest or spend money on a home warranty. Just make sure to do research before making a decision.

What Are The Pros And Cons Of Home Insurance?
A home insurance policy may cover the structure of your home and personal belongings caused by disasters. It should also cover expenses in hotel bills and restaurant expenses while your home is inhabitable. Read the guide below to know the pros and cons of home insurance:

Pros:

• It may cover high expenses that one may not be able to afford
• It should take responsibility for injuries or destruction of other people's property caused by the policyholder
• It should cover homeowners' hotel bills, food expenses, and other expenses needed while their home is inhabitable
• It should cover significant damages that majority of homeowners can't afford

Cons:

• It may cost an extra payment monthly
• It may not cover everything. There are still some limitations
• It may not cover destruction caused by flood
• It may not cover the destruction caused by earthquakes

Is it Wise to Invest Money in Home Insurance?
It is a big decision to make in choosing a home insurance policy; homeowners must be aware of its advantages and disadvantages to choosing the right policy.

Conclusion:
When owning a home, the homeowner is responsible for its expenses: the repairs, replacements, and minor and major maintenance. Choosing to pay for home insurance and home warranty may be a good idea. Home insurance may cover the bigger expenses but not the smaller ones, while a home warranty may cover the smaller repairs or replacements in one's own home. 

At Cornerstone Insurance Agency, we do our best to ensure that our clients are well-protected with affordable and comprehensive policies. We will go the extra mile to help you with your needs. To learn more about how we can help you, don't hesitate to contact our agency at (888) 661-8831 or Click Here to request a free quote. Topics and coverage discussed in this article are not guaranteed, consult with your agents to determine what your policy does and does not cover. We are more than happy to help!