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Home Warranty Service Agreements and Homeowners Insurance Are Not the Same


A home is arguably the biggest and most significant purchase an individual or family will make in a lifetime. With a significant purchase comes a substantial list of questions, and one of the most common inquiries is: “What is the difference between my homeowners insurance policy and a Home Warranty Service Agreement?”

What a Home Insurance Policy Will Protect

Policies vary by provider, but generally speaking, homeowners insurance is often included in a homeowner’s mortgage and covers loss from incidents like fire, storms and vandalism. The damage may occur to personal property inside of the home or other major components of the building.

Homeowners insurance and Home Warranty Service Agreements are complementary and do not overlap coverage.

What Do Home Warranty Service Agreements Protect?

A Home Warranty Service Agreement covers major systems and appliances that malfunction or break from normal wear and tear. These expensive-to-repair items such as air conditioning and heating units, electrical wiring, refrigerators, ovens, dishwashers and garage door openers will age over time and repairs are inevitable. These items are never covered by homeowners insurance. A Service Agreement offers protection from these repairs. Home Warranty Service Agreements can be purchased for current homeowners, home buyers or home sellers.

Do you want to learn more about the differences between Home Warranty Service Agreements and homeowners insurance? Read the 2-10 Home Buyers Warranty® Comprehensive Coverage Pocket Guide, which will explain the difference between homeowners insurance, Home Warranty Service Agreements and new construction structural warranties. The pocket guide will demonstrate how each of these options provides unique coverage for a home, and can be used in conjunction with each other to obtain comprehensive coverage.

Click Here to Read the Comprehensive Coverage Pocket Guide Now

2-10 HBW offers the most comprehensive coverage for homeowners. Let us help you get started with a Home Warranty Service Agreement today!