Understanding the Difference Between a Home Warranty and Homeowners’ Insurance

As a homeowner, it’s your responsibility to ensure that you’re doing what you can to keep your largest investment — your family’s home — protected. If you have a mortgage, then you’re required to have homeowners’ insurance by your lender. A home warranty, however, is not required — but is recommended. So, what exactly is the difference between the two, and what problems do they cover?

What is homeowners’ insurance and what does it cover?

Homeowners’ insurance policies generally provide coverage for the inside and outside of your home, as well as theft protection for your personal belongings. Examples of issues covered by most policies include damage from fires, hailstorms, tornadoes, strong winds, and other types of issues caused by an accident or natural disaster. You also likely have coverage listed in your policy in case someone is injured while visiting or performing work at your home. If a covered problem occurs at your home, you file a claim with the insurance company.

With homeowners’ insurance, you pay a yearly premium to keep the policy current. The cost varies by provider and what coverage is included. If a problem is covered under the policy, the homeowner will need to pay their “deductible” for the claim before the insurance company will provide payment to get the issue taken care of. The dollar amount for a deductible varies by policy. Generally, the lower the deductible, the higher the cost for the policy’s annual premium, and vice versa.

Many homeowners are surprised when they have an issue with their heating and cooling system, service lines, or plumbing and find out that the problem isn’t covered by their homeowners’ insurance policy. And that they have to pay for the repair(s) needed out of their own pocket.

What is a home warranty and what does it cover?

A home warranty plan is not required by a mortgage lender. Nevertheless, it’s valuable protection that’s recommended for every homeowner. The home warranty plans we offer include coverage for a variety of appliances, systems, and service lines — from heating and cooling systems to your water and sewer service lines. When something goes wrong and the needed repair is part of your coverage, we’ll take care of it. (The availability of plans we offer varies by your location.)

Our home warranty plans alleviate the frustration and anxiety caused by sudden and unexpected breakdowns, and they can also help keep your vital appliances running as efficiently as possible (for as long as possible!).

American Water Resources takes the hassle out of homeownership!

Call and speak with one of our helpful, friendly Customer Care professionals. Tell them about your home and any concerns you may have, and they will help to match you with your perfect program or programs. Depending on where you live, we can provide you with protection for your home’s heating and cooling systems, plumbing, water lines, sewer lines, and more. You can also visit us online and enter your ZIP code to see what plans are available in your area.

What do I do if I’m enrolled in a home warranty plan and need to file a claim?

Once you’re enrolled in a plan and a covered problem occurs in your home, simply pick up the phone and give us a call. We will work with our network of professional, skilled, and experienced service providers to locate someone in your area who will take care of the issue so that your home can get back to normal again as quickly as possible.

Take the guesswork out of budgeting for unexpected repairs in your home by enrolling in one of our valuable protection plans.

Let us answer your questions!

Have questions about what’s covered, how to file a claim, or billing? Give us a call anytime at 855-800-5195. We are here to help you.