If you’re new to owning a home, or are thinking about buying, you may be wondering the difference between a home insurance plan and a home warranty (or protection plan). Both homeowners’ insurance and home protection plans provide protection, but they both cover different things. They also operate in different ways.
If you are looking to find the difference between home insurance and a home protection plan, look no further.
What is Homeowners Insurance?
Homeowners insurance is a form of protection for your home and occasionally some of the things in it. They generally protect the structure of your home from damage, but they can also include some protection of your personal property (this is different for each policy). You pay a set amount every month (or annually), and generally have a deductible should anything become damaged and you choose to use the insurance. Most homeowners insurance policies do not protect things like appliances, consumer electronics, and other personal property. However, they can include some personal items coverage.
Many people pay for a homeowners insurance policy through their mortage payments, but you can also pay via monthly, biannual, or annual payments, depending on the plan you have set up with your provider.
What is a Home Protection Plan?
A home protection plan, like homeowners insurance, provides some protection for your home. The major difference between the two types of coverage is what they protect. While homeowners insurance plans generally cover the structure of your home, home protection plans do not. Instead, home protection plans cover major systems within your home (e.g. HVAC systems, furnaces, plumbing, electrical, etc.) from breakdowns. They can also provide protection for major home appliances like ovens, refrigerators, etc.
Home protection plans also charge a monthly or annual rate, but you cannot pay for them through your mortgage payments like a homeowners insurance plan. There may also be a service charge when you call for a repair or replacement of an appliance or home system.
Which is Better?
Both are great things to have. Since they both provide protection for different things, it’s a good idea to have both homeowners insurance and a home protection plan. While your homeowners insurance will cover the structure of your home, the protection plan will cover the things you use within it.
Not All Protection Plans Are Created Equal
There are many industry protection plans to choose from, but not all of them are good options. Some only provide protection for certain items; others lock you into long-term contracts that keep you paying even when you don’t want the protection anymore.
At Everything Breaks, we offer a Total Home Protection Plan that protects most of what you own for one low rate. Our total protection plan covers unlimited consumer electronics, four major home systems of your choice, and 17 smaller home systems and appliances. It’s total protection for your home and the things you own.
On top of what we cover, we also offer contract-free agreements. You pay month to month for as long as you need the coverage. No long-term contracts or commitments. We cover appliances of any age and have a quick and easy claims process with same-day scheduling.
If you are looking to own a home or have recently purchased one, a Total Home Protection Plan from Everything Breaks is the best way to supplement your homeowners insurance and give you the protection you need, when you need it.
