Among the general population, there is a certain amount of confusion over the difference between a home warranty and a homeowners insurance policy. Some people assume that these are different names for the same thing.

Actually, home warranties are very distinct from homeowners insurance. They are neither better nor worse than insurance—they simply cover different items in or around a home and apply in different circumstances.


Here are the differences between homeowners insurance and home warranty plans:

Homeowners Insurance

Homeowners insurance protects policyholders and their property against harm caused by unexpected occurrences. This could include:

• Property and system damage caused by a fire

• Water damage resulting from a flood or a severe storm

• Systems that were struck by lightning

• Items stolen by a burglar

When an incident like the ones listed above occurs, a policyholder would contact their homeowners insurance provider. After that, an insurance adjuster would come to the policyholder’s home and start a claim for repairing or replacing the systems or appliances that have been harmed.

After the insurance company approves the claim, it will pay the amount for repairs laid out in the policy. The policyholder will also get charged the deductible for the claim, whatever that amount might be.

Homeowners insurance policies usually cover items and situations like these:

• Clothes, computers and other personal property

• Furniture and appliances damaged by a disaster

• Living expenses if a fire or other disaster renders a residence uninhabitable

• The structure of a house itself

Home Warranty

Home warranty plans, on the other hand, cover critical systems and appliances that break down not from disasters but from standard wear and tear. They can cover things like the following:

• Air Conditioning Systems

• Heating Systems

• Water Heaters

• Refrigerators

• Dishwashers

• Faucets and Plumbing

• Garbage Disposals

Do You Need Either? Both?

As the descriptions above suggest, home warranties and homeowners insurance do not compete with each other. Instead, they can complement each other. When a homeowner has both, they can avoid expensive repairs and equipment purchases.

The Home Service Club is proud to help homeowners protect their property through affordable, reliable home warranties. The company offers Standard and Comprehensive Coverage for major appliances and systems, including refrigerators, AC systems and electrical systems.

About The Home Service Club

The Home Service Club is one of the finest home warranty providers in the US. The company gives clients efficient repairs and maintenance for household systems and appliances at a reasonable home warranty cost.

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