Things that You Should Know About Home Warranties and Home Insurance
Buying a home is one of the exciting and costly events. Because of that, it will be necessary that you protect it with home insurance and home warranties. Discussed herein are the difference between home insurance and home warranties and why you need them both.
First of all, lenders need home insurance. This is important in protecting their interests in the loans. The truth of the matter is that you cannot own a house with a loan if you don’t have insurance. Thus why when you don’t have home insurance lenders will purchase one for you. Besides, it will also help in protecting your home after you have paid off the loan.
Apart from that, home insurance protects your structure and personal belongings. Indeed your home and belongings can be damaged by things like fire, floods and more. The good thing with home insurance is that the insurance company will compensate you for the losses. The other thing is to make sure that home insurance covers everything.
Besides, you should know that home insurance does have limits. For instance, it will not cover for damages caused by normal wear and tear. This means that you will be responsible for the repairs and maintenance that your home needs.
One thing with home warranties is that they fill in the gaps. Like we said that home insurance has limitations and thus where a home warranty comes in. This includes repairs, maintenance, and replacements. Thus why you need both of them so that you are protected against everything.
Besides, you should know that home warranties protect your budget. Remember that it will be the responsibility of the home warranty to fix all the items that they list in their policy and you will just need to schedule an appointment. Here you will only pay the service call and the entire bill will be covered by the home warranty company. As a result, you will say goodbye to situations when your items and damaged and you don’t have the money to fix it.
Finally, home warranties are affordable. When you compare home warranty and insurance, you will realize that you will pay much less for a home warranty. You need to understand that the cost of home warranty will be determined by certain factors. Age of appliances and components, age of your home, how many appliances you have just to mention but a few of the things that will determine the cost.
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