Understanding the Difference Between Home Warranty Plans and Homeowner’s Insurance

As a homeowner, it’s important to know the difference between a home warranty plan and homeowners insurance. Knowing the difference between these two types of coverage can help you determine how to best manage the cost and protection of your home.

What is a Home Warranty?

A home warranty is a service contract that helps protect homeowners in the event of expensive, unexpected repairs or replacement of home systems and appliances. Home warranties typically cover major appliances such as refrigerators, stoves, washing machines, ovens and dishwashers. It can also cover other systems such as electrical wiring, plumbing, heating systems and air conditioning.

What Does Homeowners Insurance Cover?

Homeowners insurance provides financial protection for your home and personal belongings. These policies cover damage from certain events like fire, theft, windstorms and hail. It also provides legal protection in certain cases if someone is hurt at your home. Generally, homeowners insurance does not cover normal wear and tear.

How Can Homeowners Benefit from Both?

Having both a home warranty and homeowners insurance can be a great way to protect your home and provide peace of mind. Home warranties cover the repair and replacement of your major appliances and other home systems, while homeowners insurance covers damage from certain catastrophic events. By protecting yourself from both expected and unexpected needs, you can save yourself from unexpected repair costs.

Comparing Dallas electricity rates and Houston electricity rates

Another way to save money on necessary home repairs is to compare electricity rates in Dallas and Houston. Utility rates in major cities can vary greatly, so researching the market for the area you live in can mean big savings over time.

Dallas residential electric rates in 2020 average around 11.04 cents per kWh, while Houston is significantly higher at around 12.54 cents per kWh. Comparing rates in those two cities can mean big savings over time and can help you save on existing appliances and systems when not covered by a home warranty or homeowners insurance.

Choosing a Home Warranty Company

When deciding which company to purchase a home warranty from, research the types of coverage they offer, how long coverage lasts, and the cost of the warranty. Compare different companies to find the best one for your needs and budget.

In conclusion, understanding the differences between home warranties and homeowners insurance is key to managing the cost and protection of your home. With both a home warranty and homeowners insurance, you can ensure better protection for your home and appliances in the event of breakdowns or damages. Additionally, by researching electricity rates in your area, you can save money and ensure better protection over time.