For most people, homeownership is a significant investment, as well as a major life goal. Given this, it only makes sense that they'd want to protect the property as much as possible. Both homeowners insurance and home warranty plans offer financial compensation for problems that may occur, but the nature and extent of their safeguards differ. Below, learn about a few of the crucial distinctions between the two.

Homeowners Insurance

A homeowners insurance policy protects you against financial losses stemming from accidental damage, theft, liability, and some covered natural disasters, such as a fire or storm-related roof damage. In most cases, if you need a mortgage to purchase a home, the lender will require you to carry some amount of home insurance.

Even if you don't need a mortgage or it has been paid off, a home insurance plan keeps you from incurring huge bills in the face of unforeseen events. 

You will need to renew the policy every year. Premiums vary based on several factors, such as your home's size, its condition, and its location, as well as if you have certain features, like a swimming pool or a security system. In general, fixtures that increase your liability risk make monthly costs go up, while elements that lower your susceptibility can earn you a reduction. 

When you file a claim for a covered event, you will need to meet a deductible, which means that you will have some out-of-pocket costs before coverage kicks in.

Home Warranties

Home warranties do not deal with the structure of the home the way insurance policies do. Instead, they cover your belongings. Usually, these items are essential appliances that help the home run safely and effectively, such as the HVAC unit, plumbing systems and fixtures, the stove, refrigerator, and washer and dryer. 

You do not need a home warranty to qualify for a mortgage. Warranties usually cost the same no matter where a home is located, how it is built, or what condition it is in. Furthermore, the deductibles are lower than home insurance. Like homeowners insurance, warranties require a specific contract term, typically one year. 

Because insurance only covers specific types of damage, a warranty is smart supplemental protection to have in place. 

 

When you're interested in homeowners insurance or a home warranty plan, contact Robert Rung Insurance. Serving the Lincoln, NE, area, this established company offers numerous insurance solutions to meet every client's needs and budgets. In doing so, they help protect their customers' financial futures. Call (402) 483-2279 to request a quote. Visit them online to learn more about their services.