Understanding the Difference: Home Insurance vs. Home Warranty
Starting from protecting your investment would be your foremost job as a property owner. This protection can come from home insurance or a home warranty, each for a different purpose. Having an understanding of the differences between both will enable you to make the right decisions. Home Insurance: Protecting Against the Unanticipated
Essentially, home insurance covers the financial ramifications of large losses suffered due to the occurrence of events stated as insured under the policy, which could include natural disasters, theft, or accidents. Classically, it ensures damages to the home structure, loss of personal goods, liability expenses, and extra costs involved in temporary accommodation in certain situations. The cost for insurance premiums will differ depending on various determinants like location, coverage, and value of the property insured. For instance, in Delhi, an average yearly premium would vary from ?7,000 to ?10,000.
And you can rest assured knowing that your house and possessions will be safe from any unfortunate incident.
Home Warranty: Protection from Apparent Wear and Tear of Systems and Appliances
A home warranty is a service contract guaranteeing the repair or replacement of covered appliances and systems in the home that fail due to normal wear and tear. This will include refrigerators, dishwashers, heating and cooling systems, plumbing, and electrical systems. In India, one can estimate that home warranty plans cost between ?15,000 to ?50,000 in one year, depending on the level of coverage and various providers.
Though not an absolute must-have, it becomes an asset for ease and savings in case of such older ones that frequently demand repairs.
Essential Differences: Scope and Coverage
The prime difference between a home insurance policy and a home warranty in terms of scope is this: Home insurance protects the external events causing major damages or loss to the home, while home warranties protect the internal workings of the home by covering repair and/or replacement of appliances and systems that have undergone normal wear and tear. Such distinction is very vital to understand so that your home can be completely protected.
Making a Thoughtful Choice
The assessment to choose between home insurance and home warranty or both is dependent upon personal needs and the specific risk that is to be addressed. Many homeowners insure both: coverage from unforeseen external events and wear and tear in their essential systems associated with their homes.
Protect Your Home Today
Keeping your home safe is the beginning of protecting your financial life. Apply now for your free consultation wherein NewEdgePolicy can assist you in evaluating your home-specific insurance and warranty options. Our experts are waiting to help you successfully through the entire process, ensuring that your home continues to be your haven for many more years to come!
