What is the difference between a home warranty and home owners insurance?
A home warranty covers things that were already wrong when you bought the home or are caused by things that the manufacturer/builder did wrong. For example, Chinese drywall.
Homeowner's insurance covers things that dance wrong because of accidents, natural disasters, crime, act of God, etc. For example, fire, burglary, etc.
Note that flood damage anywhere in the U.S. or earthquake trash in California is not covered by either a warranty or homeowner's insurance. To be covered for floods, you necessitate flood insurance from the National Flood Insurance program. To be covered for earthquakes in California, you call for earthquake insurance from the California Earthquake Authority.
Totally different. A home warranty protected against specific defect (utility systems, etc.) for a limited period of time.
Homeowner's insurance included both liability insurance and physical insurance on the house for accident (fire, storm damage, theft, etc.).
A total lot! Home warranty are offered to sellers to insure that appliances will be covered for a specific amount of time - usually 1 year from date of sale. This would include - electric and gas appliances such as stoves/ranges/refrigerators, washers and dryers, etc. Some may include home maintain systems as in Electrical/water/plumbing/gas, etc.
And Home Owners insurance is usually required by Mortgage companies to be paid by buyers to insure that a home can be replaced if a fire/accident/but not flood and not earthquake.
Home warranty is a promise to pay for a buncha stuff, usually appliances or majory systems (think hot water heater), usually power-driven breakdown, wear and tear, maintenance stuff - NOT things similar to fire, theft, etc. That promise is only as honest as the company backing it, and many companies start up and wallet bankruptcy when the claims start coming in, single to start up again under a new corporate nickname. It's not regulated.
Homeowners insurance covers sudden accidental losses, not usually mechanical breakdown, not upkeep, not wear and tear stuff. It's regulated by each state's insurance commissioner.
Same difference as a car's businessman warranty and auto insurance.
Related Questions:
Homeowner's insurance covers things that dance wrong because of accidents, natural disasters, crime, act of God, etc. For example, fire, burglary, etc.
Note that flood damage anywhere in the U.S. or earthquake trash in California is not covered by either a warranty or homeowner's insurance. To be covered for floods, you necessitate flood insurance from the National Flood Insurance program. To be covered for earthquakes in California, you call for earthquake insurance from the California Earthquake Authority.
Totally different. A home warranty protected against specific defect (utility systems, etc.) for a limited period of time.
Homeowner's insurance included both liability insurance and physical insurance on the house for accident (fire, storm damage, theft, etc.).
A total lot! Home warranty are offered to sellers to insure that appliances will be covered for a specific amount of time - usually 1 year from date of sale. This would include - electric and gas appliances such as stoves/ranges/refrigerators, washers and dryers, etc. Some may include home maintain systems as in Electrical/water/plumbing/gas, etc.
And Home Owners insurance is usually required by Mortgage companies to be paid by buyers to insure that a home can be replaced if a fire/accident/but not flood and not earthquake.
Home warranty is a promise to pay for a buncha stuff, usually appliances or majory systems (think hot water heater), usually power-driven breakdown, wear and tear, maintenance stuff - NOT things similar to fire, theft, etc. That promise is only as honest as the company backing it, and many companies start up and wallet bankruptcy when the claims start coming in, single to start up again under a new corporate nickname. It's not regulated.
Homeowners insurance covers sudden accidental losses, not usually mechanical breakdown, not upkeep, not wear and tear stuff. It's regulated by each state's insurance commissioner.
Same difference as a car's businessman warranty and auto insurance.
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