Home Insurance vs. Home Warranty: What’s the Difference?

Understanding the difference between home insurance and a home warranty is essential for homeowners. At Lakewood Insurance, we want to help remove the confusion surrounding these types of financial protection.

What Is Home Insurance?

Home insurance is a policy that covers your home and personal belongings against unexpected events such as fire, storms, theft, or vandalism. In Texas, where severe weather can strike at any time, having the right home insurance is crucial. Most mortgage lenders require homeowners insurance, and it typically covers:

• The structure of your home
• Personal property inside the home
• Liability protection if someone is injured on your property
• Additional living expenses if you need to temporarily relocate due to a covered loss

What Is a Home Warranty?

A home warranty, on the other hand, is a service contract that helps cover the cost of repairing or replacing major home systems and appliances that break down due to normal wear and tear. Unlike home insurance, a home warranty is optional and not required by lenders. Common items that may be covered by a home warranty include:

• Heating and cooling systems
• Electrical and plumbing systems
• Kitchen appliances (such as ovens, dishwashers, and refrigerators)
• Laundry appliances

Key Differences

The main difference between a home warranty and home insurance is that home insurance protects against sudden, accidental damage from external events, while a home warranty covers breakdowns from everyday use. Home insurance is essential for financial protection against disasters, while a home warranty can provide peace of mind for homeowners who want help managing repair costs for aging systems and appliances.

How Our Team Can Help

Lakewood Insuranceis here to answer your questions and ensure you have the right coverage for your Texas home. Contact us today for a personalized quote or more information.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.