Homeowners Insurance vs. Home Warranty – Realtors Know the Difference

Homeowners Insurance vs. Home Warranty – Realtors Know the Difference

When you buy something expensive, it will usually come with a warranty, and homes are no different. Most people who buy a home warranty do so once the sale closes, but not everyone realizes that a home warranty isn’t the same thing as homeowners insurance. A home warranty is essentially a policy that will pay for repairs if the appliances in your home break down. From air conditioning to water heaters, when these appliances break down unexpectedly, it can leave a new homeowner in a serious bind. They’ve just made a big purchase on a home, and now the fridge is on the fritz.

Informing a client about the availability of a home warranty once the sale closes is ideal, but it’s always good to make sure they know that a home warranty and homeowners insurance are two separate things. Let them know what will be protected when they buy the home warranty. These include

  • Plumbing
  • Electrical Systems
  • Heating and Cooling
  • Washer and Dryer
  • Oven, Range, and Garbage Disposal

Homeowners insurance, on the other hand, covers structural damage to the home from a variety of sources. Making sure that your client knows the difference between the two is important, as they might think they’re buying one when really they’re getting the other.

One of the great things about home warranties is that they aren’t all that expensive. General coverage starts at around $300, and more comprehensive coverage can be in the $600 range. Much like homeowners insurance, people can add extras to their warranty coverage like swimming pools or certain types of landscaping (fountains, wells, ponds, etc.).

Ultimately, buying homeowners insurance and a home warranty will provide the kind of coverage for new home owners that they can move in with peace of mind that if something breaks, they won’t have to come out-of-pocket for repairs or replacements.

If you have additional questions regarding these issues, give Carol a call at 661-903-3803 or visit InsuranceSCV.com for a FREE quote!