There are around 7 million homeowners in the state of Texas, many of whom understand the importance of protecting their property. Your home is much more than a structure and there is a lot to consider. Everything from your home’s appliances to your personal possessions to additional structures on your property is at risk of facing perils that can cause tremendous loss for you and your family.
Both home warranties and homeowners insurance policies can help you protect against such losses, and understanding how each works allows you to make informed decisions to best protect your property. Warranties, like insurance, won’t cover everything, but they can come in handy as an investment against facing expensive losses on your own. Take a closer look at how both of these powerful tools can help you save money in the long run and restore your losses during a time of need.
What Is The Difference Between Homeowners Insurance and Home Warranty?
Your homeowners insurance policy is there to protect your home, personal property, and finances from specific perils. Common perils include damage from fires, lightning, hail, smoke, falling objects, theft/vandalism, and more. Other structures such as detached garages and fences are also covered against these perils in most cases. A home warranty, on the other hand, is protection for things such as appliances and repairs that often extends beyond those of a builder or an appliance company.
Though there may be some overlap, depending on the terms of your warranty and insurance policies, a general rule of thumb is to look at a warranty as protection against what will happen and insurance as protection against what could happen. Your washer and dryer will eventually break down due to use, however, a house fire caused by a lightning strike is an unlikely accident.
Home Warranties and Homeowners Insurance Work Best Together
If you were to suffer a loss such as a busted microwave or a toilet that won’t quit overflowing, the expenses would be sizable. Rising labor and material costs are only exaggerating these events and even routine issues due to wear and tear are expensive to recover from financially. This is where a home warranty comes into play. Protection against breakdowns that happen over time.
Your Texas homeowners insurance policy is powerful protection that covers your home and property against certain perils. You’ll even receive liability protection in the event someone is accidentally injured while visiting your property. Wear and tear won’t be covered and homeowners hold responsibility for general upkeep, however, as bad as an appliance breaking down may be, the destruction of your home is far worse.
Homeowners insurance policies should include enough coverage to restore a total loss should your home become destroyed. A standard home insurance policy will also provide you with coverage for food and lodging while you are displaced. Overall, both are great options for protection, but home insurance is non-negotiable. We highly recommend that all homeowners have a valid home insurance policy to remain best protected. Home warranties are also great tools but should be an additional consideration.
How Texas Homeowners Benefit From Home Warranties
The state of Texas is a beautiful place to call home. Homeowners know that even though the Lone Star State is unlike any other, there are plenty of hazards that can befall their homes and appliances. The weather alone is unpredictable and diverse at best. This means that there are plenty of things that could go wrong as well as plenty that will eventually due to usage.
Weather in Texas is reason enough alone to consider both home warranties and home insurance. For example, due to our unusually warm climate, while the average life span of an A/C unit in the United States is 15 to 25 years, in Texas, this shrinks to 10 to 15 years. Your home insurance policy may cover an appliance such as a dishwasher or HVAC unit that is damaged by a peril covered by your policy, but wear and tear is almost never covered. Home warranties can add an extra layer of protection that will help you avoid paying out of pocket to repair or replace vital parts of your home.
Tips For Choosing a Home Warranty
Before purchasing a home warranty, you’ll want to take a step back and understand a few things. No two warranties are the same, nor are any two homes. Sure, even comparable homes may have striking similarities, but the condition, age, and quality of the appliances and fixtures can range drastically. Take a closer look at some of the important things you should consider before purchasing your home warranty:
|Home Warranty Consideration:||Why It’s Important:|
|The cost of your home warranty.||Just like insurance, the more coverage you obtain through your home warranty, the more it will cost. At the same time, you’ll want to avoid overpaying for coverage you may not need. Take some time to audit your home and what needs protection to select the best warranty for your home.|
|The limitations and exclusions that are stated in your home warranty.||Knowing that you are protected is important, but equally as important is knowing how you are protected. Your home warranty should list its coverage limits and what is not included for protection. This can help you decide which warranty is right for your needs, the amount you will pay, and how to decide on any additional forms of protection.|
|Your home warranty’s claim waiting period.||A home warranty is likely to have a specific waiting period before you are able to submit a claim. This means that if you purchase a home and an appliance is already damaged or becomes damaged, you may have to wait a period of time before you are able to restore the loss.|
|Is the cost of preventive maintenance included in your home warranty?||For many warranties, the answer is no, but each is different in how it protects your home’s appliances. Other warranties may even penalize you for failing to conduct certain acts of routine maintenance.|
|Your home insurance policy’s terms and conditions.||It may feel obvious but you’ll want to be sure to read the fine print of your home warranty. By understanding what is protected and how you are protected, you won’t be surprised down the road should you suffer a loss.|
The ideal home warranty will provide protection at an affordable rate while complimenting your home insurance policy. Together, both of these coverages are powerful tools that save you from paying large sums of money to maintain your home after a loss.
Pay Less While Protecting Your Home in the State of Texas
Are you looking for a home warranty? Check out this informative article on some of the top home warranty companies available to homeowners throughout Texas from MarketWatch. There, you can compare features, costs, and even purchase a warranty for your home. But as important as a home warranty might be, they are only part of the equation. Homeowners insurance is a necessary protection for every homeowner in Texas, and for the best coverage available, contact the experts at Freedom Insurance Group (FIG) today!
We’ve been helping homeowners in the state of Texas save on home insurance since 2005, and continue to provide affordable protection with coverage that matters. By working with 25+ top-rated insurance carriers, we can compare your rates and find the best coverage for your home at the lowest price available.
Every home’s needs are different and each company uses its own methods and calculations to determine your premium rate. This can create a range of prices making shopping for the right coverage nearly impossible. Let our agents do the hard work for you by providing a personalized coverage approach to your insurance needs in a fraction of the time. Our average client saves 40% when switching to FIG. Speak to one of our agents or get a free homeowners insurance quote using our easy-to-use online tool.