Home Warranties vs. Homeowners Insurance: Why Consumers Need Both

By Tom Scott May 1, 2019 10:00:00 AM

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Between homeowners insurance and a home warranty policy, consumers can achieve comprehensive protection for their home. But what are the differences and benefits of each?


From choosing a neighborhood to determining a price range, buying a home is an extensive, complicated undertaking—and that’s before adding the question protection to the proceedings. But once a consumer has secured a home, what protection options should they be considering?

Homeowners insurance: required

For new home buyers, protection for a new property purchase begins with homeowners insurance—a requirement. Providing coverage for damages due to natural causes like storms or fire, or man-made causes like theft, homeowners insurance policies are mandatory for any home carrying a mortgage.

What’s the benefit? If, for example, a house catches fire and the owners lose their belongings, homeowners insurance can help to replace those belongings. In addition to disaster protection, these policies also include liability coverage against accident-related legal action.

Home warranties: optional

Providing protection for the repair or replacement of appliances, plumbing, electrical units, and more, home warranties offer valuable extended coverage, but are completely optional. Consumers who opt in can enjoy added peace of mind knowing many of the most vital items and systems in their home are protected against everyday wear and tear. And, as the connected home becomes more common, many home warranty companies are now expanding this type of coverage to include smart electronic home systems.

While the requisite homeowners policy can protect a consumer’s home from major disasters, home warranties can help address other common uncertainties most homeowners are likely to face. With home sales in the United States still trending up, it’s important that new buyers keep the benefits of both in mind.

For more home warranty tips and trends, visit the Fortegra blog!

Categories: Warranty

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