How To

How to decide between Warranty and Homeowners Insurance.

Having insurance for your home is very important. Do you have plans of owning a house like the many people who won’t stop dreaming about their ideal house and the structures? Living a comfortable life can never be overestimated. People love their space, abs want to keep the house they want, decorate and beautify the house with everything pleasant to behold. To some people this is only only a dream but others work towards bringing it to life.

Shopping for a house, the price of the property, and other expenses like maintenance and repair, which ends up increasing their budget for homeowners, this is sometimes big for them to handle. In order to reduce the expenses most people opt for a home warranty or homeowners insurance.

It simply entails that it is necessary to come to the realization that even though these two services protect the house, they work independently and are different from each other. We’ll get to know the differences and costs of a home warranty and homeowners insurance to enable us to make the right decision.

Definition of terms.

A home warranty is simply agreement that covers fixing and replacement services for your home appliances and properties. It saves you from spending your money on certain home appliances and home repairs while homeowners insurance covers or insured a home and the properties of the owners from natural disasters, theft and even accidents.

Having homeowner insurance.

Having a homeowners insurance comes with different benefits and they are:

1. Safety of your home and structure

Should damages happen in your home it is taken care of by the insurance company they spend on the repairs and ensuring that your house is in good shape. It will also cover detached structures such as garages, tool sheds, or gazebos. Having homeowners insurance stops you from bothering about damages in your house, the insurance company ensures that things are out in place.

2. Secures your personal belonging
Damages caused on your personal property due to theft, natural disasters, excluding floods, will be covered by the insurance company, the house owner only has to just inform the insurance company of the damages.

3. Handles liability.
It would amaze you to know that the insurance company doesn’t only take care of your belongings and home, they also cater for the homeowners family, pets against lawsuits for injury or property damage done to others. No-fault medical for guests injured on the homeowner’s property is also attended to. This is a lot of burden lifted from your shoulder as a house owner.

4. Careers for you during disasters

Disasters can misplace you form your house or give you reasons to stay out of your house due to certain distractions caused by natural
Disaster the insurance company insures for the disaster, the policy will pay for your additional living expenses like hotel bills, food, etc.

Having a home warranty

A home warranty has its limitations which is different for companies , no two companies have the same insurance coverage. The standard coverage caters for necessary appliances and systems like refrigerators, HVACs, dishwashers, heating or electrical systems, and other services. For a standard company in charge of your home they take responsibility for the things mentioned.

Comparing both costs

For a home warranty company they would usually ask for a yearly premium which ranges from $300 to $600, though there are some that charge an extra amount for companies for a trade service call fee.

While for homeowners insurance the cost varies based on the location of the home, the insurer, and the coverage amount. It was reported by the National Association of Insurance Commissioners that the average annual homeowner’s insurance premium is $1,211. With this information you can choose fir yourself what it is best for your homes.

Striking a good deal

We are now aware of the both costs, it is easier to decide which option is best for you as per your requirement. It is also advised that you contact and consult various companies to understand how they work. That’s if you are still confused about this. I guess these few tips would go a long way in helping you decide what option is best for you, your family, pets, properties and everything important to you.

Leave a Comment