Homeowners Insurance vs. Home Warranty Plans: What is the Difference?
Among the general population, there is a certain amount of confusion over the difference between a home warranty and a homeowners insurance policy. Some people assume that these are different names for the same thing. Actually, home warranties are very distinct from homeowners insurance. They are neither better nor worse than insurance—they simply cover different items in or around a home and apply in different circumstances. Here are the differences between homeowners insurance and home warranty plans: Homeowners Insurance Homeowners insurance protects policyholders and their property against harm caused by unexpected occurrences. This could include: • Property and system damage caused by a fire • Water damage resulting from a flood or a severe storm • Systems that were struck by lightning • Items stolen by a burglar When an incident like the ones listed above occurs, a policyholder would contact their homeowners insurance provider. After t