Building Forward. S&A Homes Blog

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

Your home is your haven, the place where you and your loved ones feel safe and secure. However, disasters can strike at any time and cause damage that sometimes can be quite expensive to repair. Luckily, you can protect your home by getting the right insurance and warranty policies. Although you may have heard these terms before, do you know the difference between them?

Many homeowners tend to mix up these policies. While they both protect your home in their respective ways, they serve different purposes. We’ll explain the key differences between home insurance and warranty and why getting both can be essential for your peace of mind and financial security.

What is home insurance?

Home insurance is a type of coverage that pays for damage to your home or belongings due to unexpected events such as fire, storms, and theft. It’s required by mortgage lenders and can also provide liability protection in case someone gets injured on your property.

Home insurance policies cover damages to the physical structure of your home and your personal property like furniture, appliances, electronics, and other items. Depending on the policy, you may also be covered for loss of use or additional living expenses if your home becomes uninhabitable due to covered damage. It’s important to note that not all types of damage are covered by home insurance and some exclusions or limitations may apply.

Home Warranty vs. Home Insurance: What's the Difference?What is a home warranty?

A home warranty is a service contract that covers the repair or replacement of home appliances and systems that fail due to normal wear and tear. Commonly covered items include heating and cooling systems, plumbing, electrical, kitchen appliances, and water heaters.

Unlike insurance, which covers unexpected events, a home warranty is designed to cover the costs of repairing or replacing items that are likely to break down over time due to regular use. Home warranty plans require an annual fee and may also require a service fee or deductible for each service call.

Why you may need both home insurance and home warranty

Home insurance and home warranty are different types of protection, but are complementary and can provide a comprehensive insurance plan for your home. Your insurance covers the structure and contents of your home, including any liability to any guests on your property. Your warranty helps manage the high costs of repairing or replacing appliances and systems that aren’t usually covered by insurance.

Suppose a severe storm hits your home, causing flooding and damage to some of your belongings. In that case, your home insurance policy will step in to cover the damage, replacement, and repair costs.

On the other hand, if your air conditioner or refrigerator suddenly breaks down due to normal wear and tear, the cost of repairs or replacement may be expensive. With a home warranty, you can get it fixed or replaced without paying the high cost out of pocket.

Taking care of your home is essential for your comfort, safety, and financial stability. By understanding the differences, you can make informed decisions about the types of protection you need and ensure that your home is adequately covered. Keep in mind that every home and homeowner is different, so it’s important to compare policies and speak with a knowledgeable insurance agent or warranty provider to find the best options for your unique situation. With the right protection, you can relax and enjoy your home without worrying about unexpected repairs or damages.

Home Warranty vs. Home Insurance: What's the Difference?Customer Care from S&A Homes

At S&A Homes, we provide an unbeatable, fully transferable 10-year warranty for our homebuyers’ convenience and peace of mind. We have a dedicated Customer Care Department available to simplify the claims process and make sure nothing goes unnoticed. It’s one of the many reasons why we have one of the highest customer satisfaction rates in the homebuilding industry!

Find Your New Home with S&A Homes

We hope you’ll consider S&A Homes when you’re ready to make the move into a new construction home.  We invite you to learn more about new home opportunities from S&A Homes throughout Central and South-Central Pennsylvania. Call 1-855-SAHome1 or visit to learn more about our new home communities, build on your lot opportunities, floorplans, and more.