The Difference Between Home Warranty and Home Insurance

Understanding the difference between a home warranty and home insurance can help protect your home—and your wallet. While both offer peace of mind, they serve very different purposes. Let’s break down what each one does and why it’s helpful to have both.

What Is Home Insurance?

Home insurance protects you financially from unexpected disasters like fire, hail, windstorms, or theft. It usually covers your home’s structure and your personal belongings if they’re damaged or destroyed by a covered event. If a tree falls on your roof, home insurance steps in to help with repairs.

Home insurance is required by most mortgage lenders and focuses on rebuilding or replacing your home in case of major damage or loss.

What Is a Home Warranty?

A home warranty is a service contract that helps cover the cost of repair or replacement for major home systems and appliances that break down due to normal wear and tear. This includes things like your furnace, water heater, kitchen appliances, and more.

Unlike insurance, a home warranty doesn’t cover damage caused by weather or accidents—it’s designed to keep your home running smoothly when everyday breakdowns happen.

Why Do Homeowners Need Both?

Think of home insurance as protection for the structure of your home, and a home warranty as protection for what keeps it functioning.

• Home insurance covers: disasters, fires, weather damage, liability.

• Home warranty covers: everyday mechanical breakdowns (like your AC stopping in the middle of summer).

Together, they give you full-circle coverage for both unexpected disasters and the more likely breakdowns that happen over time.

Protect What You Count On

At Home Warranty Inc., we believe you deserve dependable coverage you can trust. Whether your AC goes out or your dishwasher stops working, we’re here to help you get back on track—fast.