Skip to main content

Lindsey Patterson

Home Warranty v. Home Insurance

4 min read


People that have never owned homes before have a lot of questions when it comes to things like home insurance and home warranties. Some potential buyers may assume that these two things are relatively similar, but these are two completely different things. People that are getting ready to buy homes need to become familiar with both.

Home Insurance

The home insurance is something that is required if there is a mortgage present. People that have homes with a mortgage are borrowing money from a bank. This means that they do not actually own the home until the home is paid off. This means that they do not have the ability to bypass homeowner’s insurance. What this insurance does is cover the replacement of the home if it is destroyed through some type of accident. Homes that are in the path of natural disasters, water damages or accidental fires are covered for the home insurance policies in most cases.

Home insurance is also something that is utilized when people are trying to cover the cost of the repairs that may come with things like water heaters that flood homes or fires that may cause structural damage. Home insurance covers these types of things up to a certain point. For matters like this people will typically file claims.

Home Warranty

The home warranty Arizona is going to be a lot different because it will not cover structural damages or the replacement cost for the home. Instead, the home warranty covers appliances inside of the home. Unlike the home insurance for people that have mortgages home warranties are not required. This is something that people can get or bypass even if they have a mortgage. It is all about what they feel they may need when it comes to potential failures of appliances inside of the home.

Getting a home warranty is something that people will appreciate if they have appliances that may need to be covered. It can be very difficult to find the money to pay for a replacement if the appliance that is malfunctioning is not something that can be fixed. With a home warranty homeowners you do not have to worry about this. If appliance cannot be repaired there will be an allowance for a replacement of these appliances. This is what makes the home warranty valuable for many people that have different appliances in the home that may have stopped working.


Some homeowners might say that the home insurance and the home warranty are policies that work hand-in-hand if you are looking for complete coverage for natural disasters and appliances that are malfunctioning. You want to have all of your grounds covered when it comes to replacing items or replacing the home if it is damaged.

People that have home warranty issues will set up a service call. With this someone is going to come out and inspect the problem. Service calls are the only things that people pay for it when they have signed up for Home warranties. The home insurance, however, involves a different process. People call in to file a claim when they are having issues with something like water damage or fire damage. When people file this claim a check will be sent out once a home insurance inspector comes out to inspect the property and verify that there are indeed issues with the home. This check will be the remaining balance after the deductible taken out.

A lot of people are going to recognize that there is a need for a home warranty even though it is not required. People that no longer have a mortgage can essentially drop their home insurance, but most homeowners are going to see a need to keep this insurance in place. It is helpful for those unexpected things that can destroy a home and make it hard to repair or replace the home without the warranty.