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. For that matter, it is recommended that you protect it by purchasing home insurance and home warranties. Discussed herein are the difference between home insurance and home warranties and why you need them both.
First of all, lenders need home insurance. The reason why they need insurance is to protect their interests in the loans. The truth of the matter is that you cannot own a house with a loan if you don’t have insurance. In case borrowers don’t have home insurance, lenders will purchase one for them. Besides, it will also help in protecting your home after you have paid off the loan.
The second thing about home insurance is that it protects your structure and personal belongings. One thing that you should understand that your home and belongings can be damaged by things such as fire, floods, and others. The good thing with home insurance is that the insurance company will compensate you for the losses. It will be better to ensure that the policy covers all the necessities.
Besides, you should know that home insurance does have limits. One thing is that it will not protect you against normal tear and wear. For that matter, you will be responsible for the repairs and maintenance that your home needs.
One thing with home warranties is that they fill in the gaps. This means that where home insurance lacks they will cover for that. Simply put, the cover for parts that require repairs, replacements, and maintenance. Having both of them will mean you have protection for just about everything.
The second thing with home warranties is that they protect your budget. You find that when the items that are covered in the home warranty are damaged, you will simply schedule an appointment with the home warranty company and they will fix it. Here you will only pay the service call and the entire bill will be covered by the home warranty company. This is beneficial because sometimes your items can be damaged when you don’t have the required amount to fix it.
To sum up, a home warranty is affordable. This is good news because you will pay less for home warranties than home insurance. Besides, you should also know that there are certain things that will determine the cost of your home warranty. The cost can be determined by things such as age of home, how many appliances and systems that you have, types of systems and appliances and age of appliances and systems among others.