It was probably unnerving when you found out you needed home insurance.

But here's the thing:

It probably got even more confusing when you learned that you might also need a home warranty plan.

home warranty vs home insurance

These two products are often confused as being the same thing but they are completely different.

In this post today, I will clear up the confusion of home warranty vs home insurance as well as when and how to use each product. 

In This Article

What Is Homeowners Insurance?

Homeowners insurance is simply protection against the loss of your home, for the structures surrounding your home, for your personal property, or for personal liability

While there aren't any state required guidelines when it comes to homeowners insurance, your bank or lender may require you obtain coverage before they issue you a mortgage.

These policies renew on an annual basis and can cost between $300 to $1,500 per year even though the average cost of home insurance is around $1,083 per year.

Every policy comes with a standard homeowners insurance deductible and depending on the company and where you live, could also come with a wind & hail or hurricane deductible.

So, if you need to file a claim, an insurance adjuster will come to your home and fill out a claim form to repair or replace any damaged items.

Once approved, the insurance company will deduct the amount of your deductible and issue you a payment for the remainder of the balance.

Pros And Cons Of Home Insurance

Below we discuss some of the pros and cons to purchasing a home insurance policy:


  • Covers your home from almost any unforeseen disaster
  • can cover your mortgage while your home is being rebuilt
  • Protects Your Personal Property at home or when traveling
  • Offers set monthly premiums and a known deductible for a covered loss
  • Perfect for first-time homeowners who are inexperienced with Managing  a home


  • you can't get a mortgage without one
  • won't protect you from floods or earthquakes
  • premiums can be expensive depending on where you live
  • You might never need it, it is possible you will never have to file a claim
  • will only cover appliances or electronics if they are damaged due to a covered loss

Simply Insurance is the simplest & fastest way to compare home insurance online.

"Simply Insurance... focuses on consumer-facing insurance products and instant online insurance quotes"

- USA Weekly

What Does Home Insurance Cover?

A home insurance policy covers any accidental damage to your home and belongings due to:

There are five primary areas covered under the policy:

Dwelling Coverage - The physical structure of the home, both the interior and exterior

Other Structures Coverage - Covers surrounding structures of your home like sheds

Personal Property Coverage -  This will cover your personal property in your home or car.

Loss Of Use - This will cover you if your home becomes uninhabitable.

Personal Liability Coverage -  Protects you if a person is injured while on your property.

Who Has The Best Homeowners Insurance?

We have found the best homeowners insurance to come from Hippo, you can check out or quick review below.

hippo insurance logo

About Hippo Home Insurance

Hippo is the newest entrant into the home insurance world but is backed by TOPA Insurance company.

As of today TOPA has an A- (Excellent) rating with A. M. Best.

Hippo believes that great homeowners insurance should be affordable, smart, convenient, and fast.

Hippo wants to make sure that you are able to get a homeowners insurance policy that covers you for the most relevant things today.

Product Features

  • Coverage For Your Home Office
  • Available In: AL, AZ, CA, IL, IN, MD, MN, MO, MS, NM, NV, OH, PA, TN, TX, WI  
  • Free Water leak Sensor For Home
  • Condo Insurance Available
  • Quotes In 60 Seconds
  • Mortgage Payment Protection
  • A Simple, 100% Online Application & E Signature Process

A Free (Roost Water Leak Sensor) With Every Policy

With every policy Hippo offers a free Roost water leak sensor that has a value of $50.00. According to Roost, you can outsmart water with their smart water leak and freeze detector. The way it works is that you place it anywhere the potential for flooding or leaking exists and if it senses water it will send an alert to your smart phone.

Simply Insurance Thinks

Hippo has come out of the gates swinging at its competitors with on average 25% lower premiums.  They also have a much faster application and approval process which doesn't require an agent to complete.  Hippo is the best answer if you need fast quotes and fast coverage.

Want to learn more?  Check out our full Hippo Insurance Review.

Now that we have a strong understanding of home insurance, it's time to go over home warranties.

What Is A Home Warranty?

On the next page you are going to get an even deeper break down of the items in your policy on your declaration page. 

Pros And Cons Of A Home Warranty


  • Provides peace of mind
  • Means fewer unanticipated repair costs
  • Offers set premiums and a known deductible for repair costs
  • Great for first-time homeowners who are inexperienced with appliance break-downs
  • Protects major appliances as they age


  • Doesn't cover everything
  • Doesn't cover appliances that weren't properly maintained
  • You might not ever Use it (like insurance)
  • Won't cover damage from fire or other disasters (this is what homeowners insurance covers)

What Does A Home Warranty Cover?

What's covered and how it is covered is going to depend on the home warranty company you decide to go with so be sure to ask for the program specifics before you purchase. 

However, here are some examples of things that might be covered for servicing, replacement or malfunction in a good home warranty program:

  • Plumbing
  • HVAC systems
  • Major Appliances
  • Electrical wiring and infrastructure
  • contractor or repair services by professionals 
  • ceiling fans
  • central vacuums
  • garbage disposals
  • bathtubs with motors
  • Jacuzzi, pools, and spas

What Are the Different Options When Choosing a Home Warranty

There are several features available in a home warranty plan to choose from, make sure you ask for all the options then decide which level of service you will need. 

Here are some quick examples:

  • A Plan that cover appliances only
  • Plans that cover the systems in your home, like the central vacuum, HVAC
  • Even Plans that cover appliances and systems
  • Add-ons for appliance or systems Like swimming pools, whirlpools, saunas, spas, etc.

Do Home Warranties Have Deductibles?

Yes, home warranties do have deductibles.

Just like you can use the deductible to save money on your home insurance, you can choose to take a higher deductible on your home warranty service contract to pay a lower annual fee.

Simply Insurance is the simplest & fastest way to buy a home warranty online.

"Simply Insurance... focuses on consumer-facing insurance products and instant online insurance quotes"

- USA Weekly

Who Has The Best Home Warranty?

We have found the best home warranty plan to come from First American Home Warranty, you can check out or quick review below.

first american home warranty small logo

About First American Home Warranty

First American Home Warranty was established in 1984. 

For more than 35 years they’ve offered their customers value, backed by strength, and stability.

They continue to grow and seek new ways to provide better service, value and convenience to our customers.

Product Features

  • Avoid Cost Of Expensive Repairs
  • Available Nation Wide
  • Request Maintenance Service Online
  • 100% Online Application Process
  • Huge Network Of Technicians
  • Online & Simple Claims Process

Additional Coverage Options

A home warranty plan will have several options to choose from and each option varies by insurance company.

Simply Insurance Thinks

First American has one of the best home warranty plans on the market. They have a super fast application and approval process along with a long list of technicians. 

They also have a much faster application and approval process which doesn't require an agent to complete.  

First American Home Warranty  is the best answer if you need fast quotes and fast coverage.

Want to learn more?  Check out our full First American Home Warranty Review.

Now that we have a strong understanding of home insurance, it's time to go over home warranties.

Home Warranty Vs Insurance, How Are They Different?

Home warranties and home insurance both cover unexpected situations. 

However, the difference is that in your homeowner policy covers items if they are destroyed by a covered loss and a home warranty plan covers things that break down from normal wear and tear.

Home Warranty

When something stops working in your house or breaks due to wear and tear, or is simply malfunctioning, a home warranty plan is what you will need.

These plans will cover a variety of things like like:

  • Covers Appliances Inside Of Home
  • pays when things break down
  • only protects items
  • Technicians Fix your appliances
  • Central Vacuum Coverage
  • Covers Your Pool or Spa

If your dishwasher stops working or malfunctioning, you would want to call your home warranty company to file a claim and get a technician to come out.

Home Insurance

Homeowners insurance is the best defense you can give your family from a natural disaster destroying your home.

Unlike a home warranty plan, your homeowners will only cover your property if it is destroyed by a covered loss and usually covers:

  • Personal Property
  • Personal Liability
  • Medical Coverage
  • Loss Of Use Coverage
  • Other Structures Coverage
  • Structure Coverage

If your dishwasher is stolen during a robbery, or destroyed due to a house fire, call your homeowners insurance company.

Home Warranty Claim vs. Home Insurance Claim

In this scenario, your dishwasher breaks down leaking water on the floor and through the ceiling of your basement getting the walls soaking wet and damaging your furniture and floors. 

While your home insurance might cover the water damage to the basement and your floors, it will not cover the cost of your dishwasher breaking down.

Your home warranty plan will kick in to cover the broken down dish washer. 

A homeowners insurance plan will cover your home and personal property, your home warranty plan will cover appliances and things like air conditioners.

Take Action

Hopefully you now understand what home warranty vs home insurance actually means and you are ready to get covered.

If you haven't started the search, you should check out our Hippo Insurance Review for home insurance.

If you need a home warranty plan then you should check out our review from First American.

Sa El

About the author

Sa El is the Co-Founder of Simply Insurance and a licensed Insurance Agent with over 13 years of experience in the industry.  He specializes in Life & Health Insurance and is certified in Long Term Care Insurance in the state of Georgia. a licensed real estate agent in the state of Georgia (License #382602), an entrepreneur, insurance educator, and freelance writer.

Sa El

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