Important Facts About Home Warranties and Home Insurance
If you have ever bought a house, you will realize that it is very exhilarating and costly. Because of that, it will be necessary that you protect it with home insurance and home warranties. Discussed herein are the difference between home insurance and home warranties and why you need them both.
To start with, lenders will need home insurance. This is important in protecting their interests in the loans. One thing that you should understand is that there is no way you will buy a house with a loan and you don’t have insurance. In case borrowers don’t have home insurance, lenders will purchase one for them. This will also help in protecting your home after you pay off the loan.
The other thing with home insurance is that it protects your structure and personal belongings. Indeed your home and belongings can be damaged by things like fire, floods and more. Thus where home insurance coverage comes in as the insurance company will compensate you for the damages. The other thing is to make sure that home insurance covers everything.
Apart from that, you should know that home insurance does not protect you in every way. One thing is that it will not protect you against normal tear and wear. You should understand that you will have to pay for the repairs and maintenance of your home from your pocket.
Besides, a home warranty fills in the gaps. Like we said that home insurance has limitations and thus where a home warranty comes in. Where they will cover for parts that require replacements, repairs, and maintenance. The thing is that with home warranties and insurance, you will be protected from everything.
The second thing with home warranties is that they protect your budget. Remember that it will be the responsibility of the home warranty to fix all the items that they list in their policy and you will just need to schedule an appointment. For that matter, you will not have to pay the entire bill but just a small amount service charge. This is beneficial because sometimes your items can be damaged when you don’t have the required amount to fix it.
The other thing with home warranties is that they are affordable. This is good news because you will pay less for home warranties than home insurance. You need to understand that the cost of home warranty will be determined by certain factors. Age of appliances and components, age of your home, how many appliances you have just to mention but a few of the things that will determine the cost.