When it comes to protecting your home, two terms often get confused: home warranty and home insurance. While both offer valuable protection, they serve very different purposes. Understanding the difference can help you avoid unexpected expenses—and make sure you’re fully covered when something goes wrong.
Let’s break it down.
What Is a Home Warranty?
A home warranty is a service contract—not insurance—that covers repair or replacement of major systems and appliances in your home due to normal wear and tear. Think of it as a protection plan for things inside the home that you use every day.
Commonly Covered Items in a Home Warranty:
HVAC systems
Plumbing systems
Electrical systems
Water heaters
Kitchen appliances (oven, dishwasher, refrigerator)
Washer and dryer
If your air conditioning stops working in the middle of summer, a home warranty could cover the cost of repair or replacement—usually after a small service fee.
But remember: Home warranties don’t cover structural issues, roofing problems, or damage caused by natural disasters.
What Is Home Insurance?
Homeowner insurance is a comprehensive financial safety net that protects your home and belongings against unexpected events like fire, theft, vandalism, windstorms, and certain types of water damage.
It’s not optional if you have a mortgage—it’s legally required by lenders to protect their investment.
Home Insurance Typically Covers:
Your home’s structure (walls, roof, foundation)
Detached structures (garage, shed)
Personal property (furniture, electronics, clothes)
Liability protection (if someone is injured on your property)
Additional living expenses (if you need to live elsewhere due to covered damage)
It may also cover specific incidents like Sewer Backup Coverage Repairs—if you’ve added that protection through an endorsement. If you haven’t, it’s worth reviewing your policy.
Major Differences at a Glance
| Feature | Home Warranty | Home Insurance |
|---|---|---|
| Type of Protection | Wear-and-tear of systems/appliances | Sudden, accidental damage or disaster |
| Required by Lenders? | No | Yes (if mortgaged) |
| Covers Appliances? | Yes | No (except for theft/fire) |
| Covers Structural Damage? | No | Yes |
| Covers Personal Liability? | No | Yes |
When Do You Need Both?
Ideally, a smart homeowner has both. While your homeowner insurance will cover the cost of rebuilding your home after a fire or replacing stolen items, a home warranty fills in the gaps by helping with the smaller—but still costly—breakdowns that occur over time.
For landlords, property managers, or home-based business owners, having the right combination of homeowners insurance and general liability insurance can provide even broader protection from both property and legal risks.
And for those looking to explore a wider range of protection options, including additional endorsements and service contracts, you can start with this home insurance service page to learn more.
Final Thoughts
A home warranty is a comfort plan for your appliances and systems. Home insurance is a legal and financial safeguard for your home, possessions, and liability.
They are not interchangeable—but together, they create a powerful layer of protection.
Tip: Don’t assume you’re covered. Review your policy annually and ask your insurance provider about add-ons like Sewer Backup Coverage Repairs or flood insurance if your risk profile calls for it.
