Home warranty vs. homeowners insurance what’s the difference?
Homeowners insurance covers sudden, accidental losses: fire, theft, wind, a burst pipe flooding your kitchen. A home warranty is a service contract covering wear-and-tear: HVAC compressor that quits, water heater that leaks, dishwasher that dies. Most customers carry both they protect different risks.
What a typical plan covers
- HVAC systems Furnace, air conditioning, ductwork.
- Plumbing Water heater, built-in plumbing stoppages, leaks.
- Electrical Main panel, wiring, switches, outlets.
- Kitchen & laundry appliances Refrigerator, oven, dishwasher, washer, dryer.
- Optional add-ons Pool/spa equipment, well pump, septic system, second refrigerator.
When a home warranty pays off
If your home is 8+ years old, if major appliances are original, or if you just bought the property and don’t know the service history a warranty pays for itself the first time an HVAC compressor quits in August. We pair customers with CDI-regulated providers and bundle them with homeowners insurance at closing.