Home Warranty vs Home Insurance

A home insurance policy and a home warranty are both designed to provide financial protection for homeowners in South Carolina, but they cover different types of risks and losses.

A home insurance policy typically covers damage or loss to your home and personal belongings caused by unexpected events such as fire, theft, vandalism, or natural disasters. It may also provide liability coverage for accidents that occur on your South Carolina property. In exchange for paying a premium, the insurance company agrees to pay for covered losses up to the policy limit, minus any deductible you are responsible for.

On the other hand, a home warranty is a service contract that covers the cost of repairing or replacing certain home appliances and systems that break down due to normal wear and tear. This can include things like your HVAC system, plumbing, electrical systems, and major appliances like your refrigerator, dishwasher, or oven. A home warranty typically doesn’t cover damage caused by accidents or natural disasters, and it doesn’t provide liability coverage. Home warranties are often sold separately from home insurance policies and require an additional annual fee.

Does home insurance cover wear and tear?

Short answer: No. Home insurance protects you from covered perils only. You can add an endorsement that covers mechanical failure for some appliances to your insurance policy, but 9 times out of 10, a home warranty is what you want for maintenance.

In summary, a home insurance policy is intended to protect against unexpected events that could cause damage to your South Carolina home or personal belongings, while a home warranty covers repairs and replacements for home appliances and systems that wear out over time. Both types of coverage can provide valuable protection for homeowners in South Carolina, but they address different types of risks and losses.a