Money Management

Home Warranty vs. Homeowners Insurance: What’s the Difference?

Karina C. Hernandez

Two types of coverage can protect you from the unexpected after you buy a home. Homeowners insurance, which covers you for vandalism, theft and certain disasters, and a home warranty plan, which pays for certain items in your home if they break. Homeowners insurance is required when you have a mortgage and is an essential protection for any homeowner. It allows you to rebuild should a storm or fire destroy your biggest asset. A home warranty isn't a necessity, but comes in handy and saves money when things start to give out around the house.

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Print Date: 9/30/2022
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