Home Warranty vs. Home Insurance
It’s a common mistake to confuse home warranty with home insurance. However, it’s important to note the differences to prevent any future problems with filing for claims. Homeowners Insurance There is a lot that could go wrong with owning a home. Natural or man-made disasters can cause catastrophic damage. A homeowners insurance plan aims to protect against that. When you finance a home, homeowners insurance is often mandatory. Generally, it will cover events that you can’t control such as tornadoes, hurricanes, freezes, fires, floods, and theft. It will protect both the physical structure of your home and the belongings inside it. According to the Federal Reserve Bureau , homeowners insurance ranges from $300 to $1000 yearly on average. If something happens to your home and it gets severely damaged, the insurance company will provide a payout. You have to file a claim with your home insurance company when something goes wrong, just as you would with your home warranty company. T