Most of us are familiar with home insurance, but not everyone knows about home warranties.
When you own a home or a car, everyone knows to insure your property in the case of an accident. But what about home warranties?
People often confuse home warranties with home insurance when each one is actually very different. Both policies are unique in helping you save on sudden costs and will bring you peace of mind — just in case anything goes wrong.
Home Warranty vs Home Insurance
A home insurance policy is an agreement for the company to cover the costs on a piece of property when there is risk involved, such as theft or accident.
A home warranty policy is an agreement for the company to repair or replace parts on warrantied items due to mechanical issues, such as age or wear and tear.
Both can help you save money in the long run and come at a routine cost that you can budget into your expenses.
Insurance policies are most common for possessions such as your home, apartment, car, boat or motorcycle. You could find yourself in a lot of trouble if you were to get in a car accident without auto insurance, or if there’s a fire in your home and you don’t have home insurance.
Instead, a home warranty covers the major systems and appliances in your home from mechanical breakdown. Mechanical breakdowns often happen over time, such as if your HVAC system is old and no longer keeps your home cool, or if you think it might be time to replace your dryer when it stops drying your clothes all the way.
Home warranty companies will help you repair or replace your appliance or home systems. Once you have your home warranty contract, place a claim and we’ll help you with the rest!
How much does home warranty insurance cost?
Your home warranty cost can be paid annually or monthly.
Select Home Warranty plans typically vary between $36 and $42 per month. The difference in cost depends on whether coverage applies to major appliances such as the fridge, oven or dryer, or if coverage also applies to major systems such as the electrical, heating or cooling systems. Both options together cost around $500/year. One option, whether all systems or all appliances, costs around $430/year.
You might also want coverage for other aspects of the home such as your sprinkler system, garage door or pool pump. Select Home Warranty offers optional coverage on these items.
For home insurance, the general estimate you should expect to pay is $35 per month for every $100k your home costs.
In the end, a home warranty could be even less expensive than home insurance, and you might use it more often to cover essential items such as your electrical system, oven, refrigerator and more.
Everyone is familiar with how insurance works, but not everyone is familiar with how a home warranty works. There are many aspects of the home most people don’t know can be covered!
Get a FREE quote today by telling us a bit about your home and learn more about the home warranty plans Select Home Warranty offers! We’re here to offer peace of mind from costly repairs.