Being a homeowner is a major financial commitment. After all, you’re not only responsible for the mortgage and property taxes, but you’ll also have to pay for any repairs if something breaks or gets ruined in a natural disaster. While homeowners insurance policies and warranty programs will both protect you from the unexpected, there are some important differences you should understand about the two concepts.
Homeowners Insurance vs. Home Warranties
Home Warranty Programs
Much like a warranty for an appliance or cell phone, a home warranty program will pay to repair appliances and vital systems if something goes wrong. Most warranties will cover your HVAC system, plumbing, electrical system, and various appliances throughout the home. In addition to the cost of the warranty, you’ll also have to pay a portion of the service fee for each visit. While these programs can provide considerable peace of mind, they generally don’t cover damage to the structure of your home, and they won’t pay to rebuild if your house is completely destroyed.
Homeowners Insurance Policies
Unlike a warranty program, homeowners insurance covers the entire structure of your home, including your appliances and a portion of your personal possessions. These policies are specifically designed to cover damage caused by specific events, so they may not help if your AC stops running in the middle of the summer. However, if a fire or severe storm ruins your roof or electrical system, your insurer will cover the repairs. In the worst-case scenario, your policy will even pay to completely rebuild your home if it’s totally destroyed due to a covered event.
Since 1963, Zimmerman Insurance Agency has provided homeowners throughout High Point, NC, with comprehensive coverage tailored to their needs. Their friendly brokers will take the time to find the perfect homeowners insurance policy, one that offers the coverage you need at prices you can afford. Visit their website for more on their homeowners insurance options, follow their Facebook for tips and coverage, or call (336) 883-6512 to make an appointment with a member of their team.