Explain the Difference between Homeowners Insurance and Home Warranty

Posted by Daniel Lawrence on August, 2016

If you own a house, you will know the responsibilities that come with it. Covering various aspects of the house with insurance is one of them. Homeowners insurance and home warranty are the two types of coverage for protecting your house. Here’s some information that may help you understand the difference between them.

Homeowners Insurance Lone Tree CO
It is compulsory to buy homeowners insurance in Lone Tree CO if you are buying a mortgage loan. It mainly covers the home against natural disasters, theft, and vandalism. It is required for protecting your belongings and liabilities.

There is a range of premiums that are available when you opt homeowners insurance Lone Tree CO depending on what all you want to cover. It is regulated by state authority.

Home Warranty
It is the choice of the homeowner to buy a home warranty. It is mainly a service contract that covers the major appliances of the house. Any issues with plumbing or electricity can be covered under home warranty.

They are also available in various options of premium values and coverage. It is advisable to a buy home warranty if your house has too many aging appliances. The expenditure for their service, repair, and replacement can be claimed.

The Difference
Although homeowners insurance Lone Tree CO and home warranty look alike, there is a huge difference between them. They serve different purposes. Let’s look at it with a scenario.

Say, some appliance breaks in your kitchen due to floods in your locality. Homeowners insurance Lone Tree CO will cover it and you can claim the expense of repair. If the same appliance needs replacement because it wears out due to aging, a home warranty can come handy.

Although possessing both is not mandatory, it is recommended to buy both and will be helpful for owners, sellers, and buyers. If you need help on buying homeowners insurance in Lone Tree CO, Allstate is the place you need to visit.

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