Newly built homes typically come with a one-year warranty on appliances and systems and a 10-year structural warranty provided for by the builder, but an existing home does not typically come with a warranty.
Your homeowners’ insurance, also called hazard insurance, covers the house itself and your personal possessions in case of a fire, theft or damage, but won’t cover you if your AC fails, your water heater tank breaks or your washer and dryer break down; However, there may be some cases that both your Home Warranty and your homeowners’ insurance may cover a portion of the same event. One example of this is severe water damage to the home due to a plumbing failure. If there is extensive remediation that needs to be addressed due to mold, water damaged floors and walls etc., then both coverages will come into play. Again a home warranty usually will cover repair items and homeowners insurance will cover large catastrophic items.
Some homeowners get frustrated by a home warranty because they assume they can hire anyone they want to make a repair and that if something is broken or old they can simply have the item replaced by the warranty policy. Home warranties offer important protection from unexpected repair bills, but it is important to know which items will be covered.
Feel free to reach out to us with any additional questions or help with determining the best coverage for you.