Is Home Insurance the Same as a Home Warranty?

Home Insurance and Home Warranty: Understanding the Difference

At Ottawa Insurance Agency serving Zeeland, MI, we prioritize the protection of homeowners’ investments. There’s a common myth circulating that home insurance and home warranties are the same products, but this is not true. Despite both services playing pivotal roles in maintaining home assets, they serve distinct purposes and cover different aspects of home ownership.

Defining Home Insurance

Home insurance, also known as homeowners’ insurance, safeguards the value of your property against loss and damage from various incidents, including fire, storms, theft, and vandalism. Your mortgage lender necessitates home insurance to protect their stake in the property. However, retaining coverage even after settling a mortgage offers an added layer of financial protection.

What Does a Home Warranty Cover?

A home warranty operates like a service contract. It’s designed to cover the repair and replacement costs of major home systems and appliances degrading over time due to wear and tear. Warranties can be particularly beneficial for items that frequently break down, such as HVAC systems, plumbing, electrical systems, and kitchen appliances. It’s noteworthy that a home warranty doesn’t cover the physical structure of a home but rather some of its contents and utility systems.

At Ottawa Insurance Agency serving Zeeland, MI, we recommend homeowners maintain both home insurance and a home warranty. This ensures comprehensive coverage for both the property itself and its major appliances. For more information, get in touch with us today.