A home is one of the biggest investments that you’ll ever make. Protecting it is essential. Two ways to protect your home are a home warranty and homeowners insurance. While the two products have some similarities, they are quite different from one another. Here’s how!

What They Are

A home warranty is a contract that covers the repair or replacement of certain components in your home. Warranties typically last 12 months and can be renewed. You do not need one to purchase a house.


Home insurance is a policy that covers damages to your home that were caused by storms, floods, fires, or theft. Like warranties, insurance is renewed every year. Unlike a warranty, insurance is mandatory when buying a house using a mortgage. Your lender requires you to have insurance on the house for the duration of your mortgage.

What They Protect 

A home warranty covers the repair or replacement of components like your HVAC, kitchen appliances, plumbing, and electrical work. In some cases, it may protect a pool or spa as well.

  • Say your HVAC were to break down. You can call out a professional to assess the situation and either repair or replace the unit. You would only be responsible for the service fee. The warranty covers the actual repairs or replacement.


Home insurance covers the cost of any damage to your home and personal belongings in the event of a storm or other disaster. Policies typically cover the inside and outside of the structure, personal property, and general liability should there be injuries.

  • If a tree falls on your house, an insurance adjuster comes to your home and assesses the damage. You pay your deductible and receive a check for the remainder of the balance so that you can fix your home and replace damaged items. Typically, higher deductibles result in lower premiums.

Which One Do You Need? 

A home insurance policy is a requirement to purchase a home if you plan to have a mortgage. You cannot finance the purchase of a home without it. A warranty isn’t a requirement, but it can still be a good idea. Home insurance doesn’t cover normal wear and tear of the essential components in your home. For optimal protection, it’s a good idea to consider having both types of policies.


Protecting your home isn’t just a good idea, it’s vital. Purchasing a warranty and insurance can help to keep your home, and your belongings safe should something happen.