homeowners insurancehome warranty
Home insurance vs. home warranty: what's the difference?
By Simple Lane Editorial Team · · 4 min read
Two products with similar names that protect against very different risks. Here’s how they work together.
Home insurance
A contract with an insurance carrier covering sudden, accidental losses fire, theft, wind, hail, and liability. Regulated as insurance under California law. Required by every mortgage lender.
Home warranty
A service contract covering wear-and-tear failures of home systems (HVAC, plumbing, electrical) and appliances. Regulated by the CDI under separate home-warranty legislation. Not required, but often valuable.
They complement each other
Burst pipe flooding your kitchen = homeowners insurance. HVAC compressor quits in August = home warranty. Most homeowners benefit from carrying both.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.