Many of you may not know the difference between a home warranty and home insurance and hence may find it troubling to understand the importance of both of them respectively.

We can guarantee that by the time you are done reading this post, you will feel the need to get both of them to feel safe and rest assured in your residence.


The core of both home warranty and home insurance is protecting your house so that you can save on hefty repair charges. But the question that arises is, what do these individually entail? Well, let us walk you through exactly what these cover, so you have a better understanding.

What Exactly Does Home Insurance Entail?

When you are considering purchasing a house and taking a loan from the bank, they will make it compulsory for you to opt for home insurance due to the vast advantages it offers. It covers both the interior and the exterior of your house.

Whether there is property damage due to a natural disaster such as a storm or a burglary in the house – the home insurance will cover the loss so that you remain comfortable and do not have to worry about the burdensome charges.

The financial math around this kind of insurance is straightforward; you have to pay a premium on an annual basis to the company you are getting your house insured from. The price tag for the premium ranges from $1,000 to $3,000, depending on the company’s policies.

For example, there is an incident of theft, and you need to call the insurance company and make a claim – if the stolen items were covered in their policies, you would get reimbursed.

At the time of the claim, you will have to give a deductible up to $2,000 and as low as $100. The premium depends majorly on how much your deductible is. The lower the deductible, the higher the premium would be, and vice versa.

Specifics about what home insurance covers:

  • Any damage to the structure – due to a fire, rain, explosion, trees, and so on
  • Theft – any incident of robbery will be covered
  • Any interior damage – such as a water leak, keep in mind the damage caused by the leak will be covered, not the replacement parts.

In contrast, home insurance will not cover anything in your house that wears out due to use. It will only cover an expense that falls under property damage.

What Exactly Does A Home Warranty Entail?

The home warranty differs not on the financial aspect of home insurance but on what it covers. These are not the same thing, but that does not make a home warranty any less critical. The home warranty will cover a range of appliances in your house; an example could be a microwave, and it will also protect the plumbing system, such as replacement parts.

We will get into the specifics later on, but the crux of a home warranty is the protection from a hefty charge of replacement parts.

In terms of availing of this warranty, it works similarly to the home insurance – you pay a yearly premium and a deductible when you make a claim. So, for example, if you opt for a home warranty (which you should), you will have to pay an annual fee to whichever company you partner up with, and once you claim anything, you will have to pay a deductible.

This doesn’t mean that you will have to bear no costs at all. If you call a contractor for a specific component or an appliance that has broken down, you will have to pay a flat fee between $100 and $600, depending on the company. Once the issue has been identified and falls under the listed items that the warranty covers, the case will be resolved free of cost.

Specifics about what home warranty covers:

  • Appliances – oven, heaters, microwaves, air conditioners, and so on.
  • Electric arrangement – the wires, fuses, and switches.
  • Plumbing arrangement – your plumbing system is covered as well.

It would be best to keep in mind that it will only cover the systems and appliances – not the damage they cause as it comes under home insurance.


So if you had the question that ‘is the home warranty the same as home insurance,’ the discussion above may have cleared the confusion.

It isn’t home insurance vs. home warranty; instead, it’s a collaboration and combined need of both these amenities so that you do not have to pay expensive repair costs or replacement costs every now and then.

If you are looking for an efficient home warranty provider, Complete Care Home Warranty offers solid options for their customers, be sure to check them out!

If you have any questions, please ask below!