What is the difference?
Home warranty and home insurance are two different types of protection for homeowners, and they cover different things.
Home insurance protects the homeowner from financial losses due to damage or loss of the home, its contents and liability claims. Home insurance policies typically cover things like theft, fire, hail, windstorms and other natural disasters.
On the other hand, a home warranty is a service contract that provides coverage for the repair or replacement of major systems and appliances in the home. Home warranties protect the homeowner from unexpected repair costs and breakdowns of covered items, such as the HVAC system, plumbing, electrical and major appliances.
A home warranty complements homeowners insurance by covering damage that home insurance policies may not. A home warranty plan can fill in some of the gaps in a homeowners insurance policy, providing an additional layer of coverage to reduce the financial risk of homeownership.