Home Warranty vs. Home Insurance: Why You Need Both?

You have insured your home, but what happens when your fridge or AC breaks during a heatwave? Most homeowners think their insurance covers everything. However, there's a big gap in protection that catches many people off guard.

Home insurance protects against disasters like fires and storms. But it won't help when your dishwasher breaks down unexpectedly. That's where a home warranty in USA can help. Smart homeowners don't choose between these two types of coverage, rather use both to create complete protection for their biggest investment.

What's the Difference Between Home Insurance and Home Warranty?

While both protect your home, they serve completely different purposes and cover different types of problems. Home insurance protects against sudden disasters that you can't predict. A home warranty protects against everyday breakdowns that will definitely happen over time. 

Why You Need Both Types of Coverage

Smart homeowners don't choose between protection options. They layer them for complete coverage. Each type of coverage fills gaps that the other can't handle. Home insurance handles the big events like fires, hurricanes, or break-ins. These instances are rare but can cost tens of thousands of dollars to fix.

A home warranty handles the smaller problems that happen all the time. Your garbage disposal breaks or oven stops heating. These repairs might only cost a few hundred dollars each, but they add up quickly.

The average appliance repair cost in the U.S. ranges from $100–$400, while a full HVAC replacement can exceed $7,000. Without both types of coverage, you're paying out of pocket for one type of problem or another.

When Does a Home Warranty Make the Most Sense?

Home warranties aren't necessary for everyone, but certain situations make them especially valuable. Here's when a warranty becomes a smart financial move:

  • Buying an older or pre-owned home - Previous owners' maintenance habits are unknown 

  • Appliances are out of manufacturer's warranty - You're on your own for repairs 

  • Budgeting is tight - Can't afford surprise $2,000+ repair bills 

  • You want 24/7 repair dispatch and vetted contractors - No scrambling to find help 

Some home insurance policies offer "systems breakdown" add-ons. However, this coverage is usually limited and doesn't cover normal wear and tear. A dedicated home warranty provides much broader protection for your appliances and systems.

How Elite Home Warranty Protects What Insurance Can't

While insurance protects against the unexpected, Elite Home Warranty protects against the inevitable. Every appliance will eventually break down, and every system will need repair or replacement.

At Elite Home Warranty, we make it simple to protect the appliances and systems you rely on every day. Whether you're moving into a new home or safeguarding an older one, our customizable plans give you the peace of mind your insurance alone can't cover. Call us on (888) 354-8398 or click to explore our plans.
Location: United States

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