What homeowners insurance covers
Homeowners insurance protects against sudden, accidental events: fire, storms, hail, theft, vandalism, a tree falling on the roof, or a pipe that bursts and floods the house. It also covers your liability if someone is hurt on your property.
What it does not cover is anything that breaks from age or normal use. If your 15-year-old furnace stops heating because it's worn out, insurance pays nothing. Same for a refrigerator compressor, a failed water heater or a clogged sewer line.
What a home warranty covers
A home warranty is a service plan for exactly those wear-and-tear breakdowns. It covers the repair or replacement of major systems and appliances that fail from normal use: heating and cooling, water heaters, plumbing, electrical, kitchen and laundry appliances, garbage disposals, garage door openers and more depending on the plan.
When something breaks, you call one number, a pre-screened technician comes out, and you pay a flat service fee. The plan pays for the repair or replacement up to the coverage limit.
Side by side
| Situation | Homeowners insurance | Home warranty |
|---|---|---|
| Furnace wears out after 15 years | Not covered | Covered |
| Storm damages the roof | Covered | Not covered |
| Refrigerator stops cooling | Not covered | Covered |
| Pipe bursts and floods the kitchen | Water damage covered | Pipe repair covered |
| Water heater fails | Not covered | Covered |
| Fire | Covered | Not covered |
| Dishwasher or oven breaks | Not covered | Covered |
The two work together. Insurance protects you from disasters. A home warranty protects you from the ordinary breakdowns that happen in every home, and that get more frequent as a home ages.
Why this matters more for seniors
Older homeowners tend to have older systems, less appetite for dealing with contractors, and less room in the budget for a surprise $5,000 bill. A home warranty fills the exact gap insurance leaves open, at a predictable monthly cost. Call (833) 667-1589 to see which plan fits your home.