Home Warranty Or Home Insurance: What's The Difference?

Both are essential, but what do you need?


Owning a home is a dream come true. But it is also usually the biggest investment most people ever make. It will also be the biggest expense you'll continually have over the years.

Unexpected home repair costs are actually some of biggest expenses homeowners face.

The bulk of these repairs aren't caused by weather damage or the normal wear and tear, but rather expensive home system breakdowns and major appliance repairs and replacements.

And this is where a the difference between home insurance and a home warranty is so important.

While home insurance covers some kinds of damage, it doesn't foot the bill when your HVAC system goes out or your oven needs replaced.

The good news is that a home warranty does. A home warranty covers unexpected repairs to home systems and appliances. The key is knowing which providers are the best and offer the coverage you need.

Let's break it down...

What does home insurance cover?

  • Damage caused to the house by fire, flooding, or extreme weather/li>
  • Natural disasters, including earthquakes
  • Theft/burglaries
  • Liability coverage

What does a home warranty cover?

  • HVAC, plumbing & electrical system repairs
  • Appliance repairs and replacements
  • Roof repairs
  • Pool, hot-tub, sprinkler and septic tank repairs
  • Home electronics

Which home warranty companies are the best?

Not all home warranty providers are the same. In face, some aren't reliable at all. To make it easy, here's a ranking of the top 4 home warranty providers in 2020:

1. Choice

Why choice?

  • Highest customer service ratings
  • No home inspection required
  • National network of over 15,000 technicians
  • 24/7 claims support
  • 1st month FREE

Get a free quote »

2. American Home Shield

Why AHS?

  • 45 years of experience
  • Build-your-own plans customized to your needs
  • Hot tub and spa repairs covered
  • No home maintenance records required
  • 30% OFF all plans

Get a free quote »

3. Select

Why Select?

  • Best budget option
  • 3 different types of coverage
  • Unlimited service calls annually /li>
  • Garage door coverage
  • $100 OFF all plans

Get a free quote »

4. Liberty

Why Liberty?

  • Best option for landlords
  • Customizable plans
  • Option to use a private contractor
  • 60-day guarantee on all work
  • $100 OFF any plan

Get a free quote »

Want to compare more home warranty options? Click here.

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