Know the Difference: Home Insurance vs Home Warranty


Here you are, you just bought a home. Now you’re wondering what’s the difference between the home insurance you got from your lender and a home warranty you’re being offered. Well, we’re here to give you a brief difference between the two. Hopefully, this will help you feel at ease.

Home Insurance

Home Insurance is a requirement from your lender. This tends to be one of the conditional approvals in the loan process, where they provide a copy of home insurance or insurance agent. The insurance will protect your home from major items (leaks, break-ins, etc.) and the amount of coverage and what is covered depends greatly on which company you select. Most Home Insurance companies do not offer standard Earthquake protection. Earthquake coverage is usually a separate policy or an add on with a substantial price increase.

Home Warranty

Home Warranty is usually paid for by the seller for your first year. This covers an appliance breaking, minor leak, etc. Again these coverages depend on which company you select and options. Most home warranty companies will dispatch a technician for repairs for a $75 deductible. The item is either repaired or replaced, again depending on which company and options are selected. Make sure you research which company is best equipped to help your family.

Want more in-depth information between the two? Ask your loan officer or agent about it! Or you can check out First American Home Warranty, one of the well-known home protection companies in the US.

Ready to buy or sell a house with Team Manzon? Start with a free consultation and see where your process will begin!