Why do I need a home warranty if I have homeowners insurance?

There are differences between homeowners insurance and a home warranty. The main difference is that home warranties focus on essential appliances and systems that keep the home functioning, whereas home insurance covers personal possessions you keep in your home.

What is homeowners insurance?

In the case of damaged personal items, such as in a fire or flood, homeowners insurance will cover the damages in accordance with your contract.

What is a home warranty?

Home warranties are contracts that cover the mechanical wear and tear of appliances and systems. In the case of mechanical difficulties around your home, a home warranty will cover repairs or replacements, according to the plan that you purchase. There are multiple to choose from.

A home warranty will cover items such as:

1. Kitchen appliances

2. Yard and outdoor appliances and systems

3. Water and temperature systems for living spaces

4. Laundry room appliances

5. Plumbing systems

How home warranties work

Once your home warranty coverage kicks in, here are the three steps to have your appliance or system fixed:

1. Visit the home warranty company’s claim page or call directly.

2. They will contact a local licensed service technician to diagnose your problem. The technician will then contact you to set up an appointment.

3. You will pay a service fee on the day of the appointment and the covered repair or replacement will be complete.

There are limitations to the amount of money that is allocated for each repair/replacement. Home warranty product coverages vary so be sure to read the fine print. We have had many satisfied clients who have used them. Home warranties are supplements to your current homeowners insurance policies that can definitely save you money in the long run.

Lauren Seigel-Gross, Seigel Realty Group at Keller Williams Realty, (203) 530-8819, Lauren.Seigelgross@kw.com