Home Insurance versus Home Warranty

Responsible homeowners will endeavor to safeguard themselves against loss or damage to their homes.

Home insurance policies are available to provide protection against loss or damage to the structure and contents of the home caused by third parties or adverse weather conditions.

Normally, an insurer will require an excess to be paid by the insured in the event of a claim. Most insurance companies will levy an excess in respect of claims arising from “hurricane” damage and another (usually lesser) excess in respect of all other claims. It is possible for the insured to select the level of excess to be paid in respect of a claim. Consequently, the higher the excess, the lower the annual premium, and vice versa.

While insurance may be optional, if there is a mortgage on the home, the mortgage company will insist on an appropriate insurance policy being in place for the duration of the mortgage loan. To secure a quote for home insurance in any Florida county, simply: Click Here.

A home warranty though is quite different. The home warranty is an insurance policy that protects the owner against defects (usually in plumbing, heating, electrical and mechanical systems, household appliances and pool equipment, etc) in the home being purchased. This is considered more as breakdown rather than hazard insurance.