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Home Insurance Vs Home Warranty

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Updated February 7, 2023

Pitting home insurance vs home warranty can be a headache. There are several things to take into account, like what they even are. America’s top-rated home insurance policies are dead set on selling you their specific product, and it’s hard to tell who you can trust. As a homeowner, you must keep your assets protected from outside forces and catastrophes should they happen. This includes expensive home appliances like a top vacuum cleaner and other gadgets.

Understanding the differences between these two types of policies can mean a world of difference after disaster strikes. The general difference is a home warranty is used to cover things like appliances so they can be repaired or fixed, whereas home insurance covers your home for major incidents like fire and flooding, or other structural damage. Keep reading for a further breakdown of how these two types of protection.


  • In general, you should try and budget for both a home warranty a home insurance policy since they provide different types of protection.
  • There are different types of policies out there and even additional coverage that you can purchase for either type of insurance policy.
  • Your lifestyle will have a huge hand in deciding how much your monthly premium costs, including where you live and whether you’re married or single.

Home Insurance Vs Home Warranty

Today we’re going to get to the bottom of the battle of home insurance vs home warranty. There are a few key factors to understand about both styles of protection, which is similar to when you’re checking if a renter’s insurance covers appliances. You’ll notice that both cover significantly different types of accidental damage. Knowing the difference between these options leads to a more informed decision about what you need and which service provider to go through. Additionally, if you are trying to get cover for an appliance like a lawn vacuum, start by asking relevant questions such as: How does a lawn vacuum work? Or, how often do you need to vacuum a pool? Get the answers to these before you choose a plan.

Explaining Home Warranties

Simply put, this is a contract of service that makes sure you get replacements for household appliances or systems should they break down. You pay a flat fee monthly to the insurance company, and they’ll send their repair company out to fix what could otherwise become costly repairs out of pocket.

The Benefits of Home Warranties

You’ll find that there are quite a few perks with having a great home warranty. Major appliances are expensive, and the breakdown of appliances is not unheard of, especially as they get older. Here are a few of the perks associated with home warranties:

  • Saving tons of money on repair costs
  • Not having to budget precisely for repairs
  • Never having to hire your own appliance repair person

The Drawbacks of Home Warranties

On the other hand, there are a few drawbacks to home warranties. The biggest ones you should consider are the following:

  • You’re spending money monthly, assuming a problem will pop up
  • A lot of lifestyle factors determines warranty costs

Insider Tip

Home insurance will also generally pay for a place to stay if you cannot be in your home due to extensive repair being required or unsafe living conditions due to structural damage.

Explaining Home Insurance

Your home insurance policy will cover a vastly different list of items. They mainly focus on repairing structural damage, personal property, personal liability coverage, and other things. Home insurance will also generally pay for a place to stay if you cannot be in your home due to extensive repair being required or unsafe living conditions due to structural damage.


As a homeowner, you must keep your assets protected from outside forces and catastrophes should they happen.

The Benefits of Home Insurance

Getting home insurance is never a bad idea. This is especially true if you live in an area prone to natural disasters like flooding or fires. Here are a few reasons you should really consider getting a home insurance policy:

  • The average home insurance policy is relatively affordable
  • You ensure the replacement of personal items with personal property coverage
  • Far more is covered than with just a home warranty policy

STAT: The average home insurance premium for owner-occupied homes is $1,211, according to a 2019 report from the National Association of Insurance Commissioners (NAIC). (source)

The Drawbacks of Home Insurance

Unfortunately, it’s not all good news. As with anything, there are quite a few factors to take into consideration when looking for different types of policies:

  • Coverage limits exist, and you should look closely into them
  • Extensive coverage means additional cost to your monthly premium


Why Do You Need Both a Home Warranty and Homeowners Insurance?

Both of these policies will protect your home in different ways. Making sure you invest in both a home warranty and a home insurance policy is a great way to keep your home safe from any number of disasters that could happen.

What Does Homeowners Insurance Cover?

You’ll find that most damage caused by external, unpredictable forces is covered under a homeowners insurance policy. These are some things that your insurance policy should cover:

  • Fires
  • Extreme weather
  • Break-ins and theft
  • General vandalism

Should I Get a Home Warranty if I Have Homeowner’s Insurance?

Since you’re looking at two very different types of protection, the answer is probably yes. This depends on whether you can work both into your budget, of course. The expenses are higher, but the warranty coverage tied together with insurance means you’re thoroughly covered.

How Does Homeowner’s Insurance Work?

Homeowners’ insurance has a few different limits. For example, it will not shield you from day-to-day malfunctions of appliances. You need separate insurance on your belongings for that. It will ensure that after a catastrophe happens, like sudden flooding or other disasters, you’re covered.

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