As a homeowner, there are a number of things that you need to look after. The cost of buying the home is only the first step and even as a tenant of a rented property there can be a lot of expenses related to the home that will be your responsibility. As a property owner who has rented out the property, there are a different set of challenges to face. Both home warranties and home insurance can be great solutions to help you manage those expenses, but which one is right for you?
1. Buying Insurance And Warranty
This is something that differs from place to place. In some cases, it is the seller that buys the warranty and includes it in the offer, in other places it is the responsibility of the buyer. Generally, insurance is something that the present homeowner will invest in and is not transferred when the ownership changes.
2. Differences In Covered Products
Home insurance is something that is generally used to protect the building of the home and in some cases, it can also extend to certain things within the home. Home warranties are primarily focused on appliances and other items within the home and will not provide any coverage for damage to the building. In the case of theft, both can provide coverage but the extent of coverage can vary.
3. Varies According To Need
With both home insurance and home warranties there are a lot of ways that you can customize the service. Generally, home warranties will give you fair coverage choices in which you can select the value of the coverage and the appliances that are covered. Similarly, home insurance can also be customized to be as basic or as comprehensive as you prefer. Also, both services can be spread across different assets. If you have more than one home you can use a single policy to cover both.
4. External Support
One of the home insurance advantages is that it can cover you with more support than home warranties. The home warranty cover value is often capped at the value of the product that it insures. In the case of a warranty, it is your security and wellbeing that is insured and the insurance company can go above and beyond to facilitate you when you need protection.
Costs for home warranties are usually low, mostly around $500 or less. Home insurance is typically more expensive and can get extremely expensive depending on the exact services that are included. Also, the kind of home insurance can vary depending on the kind of home it is for. Policies for suburban or agricultural properties will be different from urban homes.
Home insurance policies can provide longer periods of coverage, these are often long-term policies but are also available on an annual basis. Home warranties are shorter and need to be renewed every year. Also, home warranties tend to depreciate faster whereas home insurance maintains a relatively stable value.
When selecting home coverage for your home the best solution is to get a mix of both these services. This way you can protect your home from all kinds of challenges and you will have protection that covers both the building and the assets within. Relying on one solution alone is suitable for those who are renting and the property owner has the other kind of protection in place.