March 2010 April 2010 May 2010 June 2010 July 2010
August 2010
September 2010 October 2010
November 2010
December 2010
January 2011
February 2011 March 2011 April 2011 May 2011 June 2011 July 2011 August 2011 September 2011 October 2011 November 2011 December 2011 January 2012 February 2012 March 2012 April 2012 May 2012 June 2012 July 2012 August 2012 September 2012 October 2012 November 2012 December 2012 January 2013 February 2013 March 2013 April 2013 May 2013 June 2013 July 2013 August 2013 September 2013 October 2013 November 2013 December 2013 January 2014 February 2014 March 2014 April 2014 May 2014 June 2014 July 2014 August 2014 September 2014 October 2014 November 2014 December 2014 January 2015 February 2015 March 2015 April 2015 May 2015 June 2015 July 2015 August 2015 September 2015 October 2015 November 2015 December 2015 January 2016 February 2016 March 2016 April 2016 May 2016 June 2016 July 2016 August 2016 September 2016 October 2016 November 2016 December 2016 January 2017 February 2017 March 2017 April 2017 May 2017 June 2017 July 2017 August 2017 September 2017 October 2017 November 2017 December 2017 January 2018 February 2018 March 2018 April 2018 May 2018 June 2018 July 2018 August 2018 September 2018 October 2018 November 2018 December 2018 January 2019 February 2019 March 2019 April 2019 May 2019 June 2019 July 2019 August 2019 September 2019 October 2019 November 2019 December 2019 January 2020 February 2020 March 2020 April 2020 May 2020 June 2020 July 2020 August 2020 September 2020 October 2020 November 2020 December 2020 January 2021 February 2021 March 2021 April 2021 May 2021 June 2021 July 2021 August 2021 September 2021 October 2021 November 2021 December 2021 January 2022 February 2022 March 2022 April 2022 May 2022 June 2022 July 2022 August 2022 September 2022 October 2022 November 2022 December 2022 January 2023 February 2023 March 2023 April 2023 May 2023 June 2023 July 2023 August 2023 September 2023 October 2023 November 2023 December 2023 January 2024 February 2024 March 2024
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29
30
31
News Every Day |

A home warranty protects your appliances, but it's not a substitute for homeowners insurance

a kitchen
A home warranty can cover the cost to repair kitchen appliances, among other items in your house.
Table of Contents: Masthead Sticky



If you're a homeowner or are about to close on a new house, you might be well aware that you need homeowners insurance. This is especially true if you have a mortgage - often, lenders will even require you to show proof of homeowners insurance. After all, you want to protect your home, since it's likely one of the largest purchases - if not the largest - in your life.

But what about a home warranty? Do you need this as well, and how is it different from homeowners insurance? Let's take a look.

What is a home warranty and what does it cover?

A home warranty protects appliances and home systems. Just how you might purchase a warranty for your cell phone or your microwave, you can purchase a warranty for your home.

A home warranty doesn't cover the walls and structure of your home. Rather, it covers the cost to replace or repair certain home systems - think the air conditioning, electrical systems, the HVAC, and water heaters - should they break down. In some cases, a home warranty might also cover home appliances, including those in the kitchen like microwaves and ovens.

You'll pay either a monthly or annual fee. 

Home warranties on new homes usually have coverage limits. For instance, appliances could be covered for the first year, along with paint and drywall, and the HVAC and plumbing systems could be covered for two years.

ProsCons

Save money on appliance repairs. It could be a solid way to protect these parts of your home, and you'll pay less out of pocket for repairs.

Coverage limits. There are also usually limits on the total amount per year that can be covered for everything. For instance, you could be covered for up to $10,000 a year on all repairs and replacements.

Exclusions apply. Your claim might also be denied due to a rule or exclusion if the issue with the appliance or home system was pre-existing or improper maintenance. 




Read more: I always thought home warranties were a scam, but I used mine 3 times in a year and it saved me over $1,000 »



Companies that offer home warranties 



A home warranty is different than homeowners insurance (which we'll get into in just a bit), you'll need to purchase a home warranty from a company that specializes in them. You don't typically get a home warranty from a homeowners insurance company. 



There are a handful of companies that you can get a home warranty from, including:

  1. American Home Shield
  2. Landmark Home Warranty
  3. Choice Home Warranty

Each have slightly different rules and limits, so you'll want to do your research and comb through the fine print.

How much do home warranties cost?

The cost of a home warranty depends on a number of things: where you live, the size of your home, the company that is providing the warranty, and the specific policy you choose. On average, a home warranty costs anywhere from $350 to $700 per year.

Besides the cost of the policy itself, there are a few fees to mind. For one, there's typically a service fee you're responsible for paying when contractors come to your home to fix an appliance or home system. This is typically $75 to $125.

Home warranties versus homeowners insurance

A home warranty isn't insurance - it's a service contract. Home warranties cover maintenance issues for equipment and appliances, not structural issues. A home warranty is optional. 



Homeowners insurance is not required by state law. However, if you have a mortgage, your lender will require homeowners insurance to protect the investment. There are three components to homeowners insurance: dwelling coverage, personal property coverage, and liability coverage.

Homeowners insurance covers your property from damage, which is often referred to as insurance perils. A peril is an event that may damage your home or belongings. Common insurance perils include fire, lightning, theft, ice, snow, sleet, smoke, vandalism, and freezing.

If your home is damaged from a tree, fire, or hail, you can have it repaired or rebuilt under dwelling coverage. Your dwelling consists of your home and "other structures" on the property, like a garage or shed. Personal property coverage includes your furnishings and electronics. Liability coverage protects you if someone is injured on your property and sues for damages.

If your dog bites someone or someone is injured on your trampoline or swimming pool, liability coverage protects you. If your house be uninhabitable due to a covered accident, additional living expenses would cover costs to relocate.

Homeowners that live in disaster prone areas - flooding, earthquakes, tornadoes, hurricanes - will need to get add-on coverage for their homeowners insurance.

CoverageHomeowners InsuranceHome Warranty
Dwelling/StructureYesNo
Personal liabilityYesNo
Personal belongingsYesNo
Loss of Use (additional living expenses)YesNo
High-end electronics/special jewelryLimited, requires add-on*No
Equipment breakdownYes****Yes
Electrical outageYes*No
Service linesYes*No
Cyber liabilityYes*No
Water damageYesNo
FloodNo**No
Wind or hailYes, but not high winds***No
EarthquakeNo*No
Appliance (AC/HVAC/water heater etc) - repairNoYes
Appliance (AC/HVAC/water heater etc) - replacementMaybe****Yes

*Available as add-on coverage if not part of policy

**Flood insurance is available through the NFIP and approved insurers

***If you live in hurricane or tornado areas, additional windstorm rider may be required

****Only if damaged due to an insurance peril

Homeowners insurance doesn't cover damage due to lack of proper maintenance or wear and tear. Likewise, many home warranties may have exclusions if there is improper maintenance.

Read more: After wasting $500 on my home warranty, I'm taking 2 steps to pay for repairs without going into debt

A home warranty could be a great way to provide some peace of mind and save you money should an appliance or home system break down. However, you'll want to know all the rules, exclusions, and limitations before you make a decision. Be sure to do your due diligence: ask plenty of questions beforehand, compare warranties from different companies, and read the fine print.

Ronda Lee is an associate editor for insurance at Personal Finance Insider covering life, auto, homeowners, and renters insurance for consumers. She is also a licensed attorney who practiced litigation and insurance defense.

Related Content Module: More on Homeowners Insurance
Read the original article on Business Insider
Москва

Топливному компромиссу между Украиной и Азербайджаном пришел конец?

Top 10 Love Affair Movies of the 2000s and 2010s

Top 10 Emmanuelle Seigner Movies

The 10 Intense New Action Movies on Netflix That Left Me on the Edge of My Seat!

Top 5 Websites to Watch FREE Movies - TV Shows (No Sign up!)

Ria.city






Read also

Don't touch! These fuzzy bugs are taking over Florida

Herzog Emphasizes Special ‘Unbreakable’ American-Israeli Bond in Meeting With US Lawmakers

'Godzilla x Kong: The New Empire' delivers same old monster song and dance

News, articles, comments, with a minute-by-minute update, now on Today24.pro

News Every Day

I was diagnosed with cancer aged 39… you are never too rich, too famous or too young, says Dr Philippa Kaye

Today24.pro — latest news 24/7. You can add your news instantly now — here


News Every Day

Top 10 Emmanuelle Seigner Movies



Sports today


Новости тенниса
WTA

Азаренко вышла в полуфинал турнира WTA-1000 в Майами



Спорт в России и мире
Москва

Актера Свиридова госпитализировали из-за инфицирования после операции в Москве



All sports news today





Sports in Russia today

Москва

«Радио Зенит» – информационный партнер форума «Мы вместе. Спорт»


Новости России

Game News

Cyberpunk 2077 станет временно бесплатной для PlayStation и Xbox


Russian.city


Українські новини

Хризантема - вродлива квітка, що вимагає особливого догляду


Губернаторы России
Владимир Потанин

Выпуск ЦФА на платформе «Атомайз» поможет снизить нагрузку на экологию


Оставить за кадром: соцсетям и блогерам хотят запретить публикации жестокого видео

Педагогическая дилемма: почему учителя не хотят работать в школах

СК возбудил уголовное дело из-за впавшего в кому россиянина в Таиланде

Лавров заявил, что сфер сотрудничества России и Запада практически не осталось


В Москве суд отклонил требование общественника Морозова закрыть YouTube-канал Егора Крида

Тариф – Большой Концертный Тур. Организация серии больших концертов.

Алла Пугачева готовится к 75-летию дать большой концерт

«Отрешенность от РФ»: адвокат объяснил молчание Пугачевой о теракте в «Крокусе»


Хачанов победил Черундоло и пробился в 1/8 финала турнира ATP в Майами

Теннисист Медведев вышел в полуфинал турнира в Майами, обыграв Харри

Александрова обыграла первую ракетку мира на турнире WTA

Виктория Азаренко вышла в полуфинал турнира WTA-1000 в Майами



Топливному компромиссу между Украиной и Азербайджаном пришел конец?

Пассажир рейса Москва — Пермь попал в реанимацию

Заказать недорогой ремонт кухонной мебели в районе в Москве и Московской области

«Радио Зенит» – информационный партнер форума «Мы вместе. Спорт»


Блиц-матч по шахматам между двумя командами провели в павильоне «Спорт для каждого»

Грязная азербайджанская пропаганда на трагедии россиян

Путин отчитал Беглова за место Петербурга в туристическом рейтинге

Энергетические поля компенсируют растущие потребности в электроэнергии


Спортсменки из Электростали приняли участие в учебно-тренировочном мероприятии в Китае

Что изменится в жизни россиян с 1 апреля

Фролов: Конвенциальной войны Россия-НАТО не будет – только ядерная

Звезда "Терминатора" встретит ЗОМБИ-КЕНГУРУ в российских кинотеатрах



Путин в России и мире






Персональные новости Russian.city
Алла Пугачёва

"Прости!!!": Пугачева попросила прощения у Манижи



News Every Day

Top 5 Websites to Watch FREE Movies - TV Shows (No Sign up!)




Friends of Today24

Музыкальные новости

Персональные новости