Important Differences Between Home Insurance and Home Warranty

Homeowners in Burlington often hear about both home insurance and home warranties, but many aren’t clear on how they differ. While both offer important financial protection, they serve very different purposes, as your insurance representative at Don Allred Insurance, serving Burlington, NC, explains. Understanding these differences can help you determine what coverage is most suitable for your situation.

What Home Insurance Covers

Home insurance is designed to protect you against sudden, unexpected damage to your home and belongings. If your house suffers a fire, windstorm, theft, or similar covered event, your insurance policy will help cover the cost of repairs or even a full rebuild. It also typically includes liability coverage, which protects you if someone gets hurt on your property.

In most cases, mortgage lenders require home insurance since it helps safeguard the value of the house itself. Without it, you’d be fully responsible for paying to repair or replace your home after a disaster, an expense that could be financially devastating.

What a Home Warranty Does

A home warranty is different. It’s a service contract that pays to repair or replace major systems and appliances in your home that fail due to normal wear and tear. Think of your heating system, water heater, kitchen appliances, or electrical systems. If they break down from routine use, a warranty helps cover the cost of getting them working again.

Unlike home insurance, a warranty doesn’t cover structural problems from storms, fires, or vandalism. It’s meant more as a budget protection tool to handle everyday breakdowns that homeowners can almost count on happening eventually.

If you’re unsure whether you could benefit from a warranty on top of your insurance, your local agent at Don Allred Insurance, serving Burlington, NC, can help you weigh the costs and potential savings. It’s a straightforward way to keep your home—and your budget—protected from all angles.