There is no similarity between Home Warranty and Home Insurance except the word 'Home'! The purpose of a Home Warranty contract is for a homeowner to enjoy a warranty for covered appliances in the home; the warranty provides assurance that covered appliances will be repaired or replaced. There are usually options available; for instance, an Air Conditioning Unit or Swimming Pool Equipment may be available as an additional endorsement.
Home Insurance on the other hand is necessary to provide the sudden and accidental loss to the dwelling from covered perils namely Fire, Lightning, Hail, Wind etc.... Home Insurance does not provide the warranty of home appliances from break down or normal wear and tear.
For example, in the disastrous event of a house fire, the homeowners insurance will provide coverage to rebuild the home and replace appliances that were damaged in the fire. This example is simply meant to aid the understanding of the difference between a home warranty and a home insurance policy; none of the above will supersede a consumer contract issued by an insurance carrier or home warranty company.
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Home Insurance on the other hand is necessary to provide the sudden and accidental loss to the dwelling from covered perils namely Fire, Lightning, Hail, Wind etc.... Home Insurance does not provide the warranty of home appliances from break down or normal wear and tear.
For example, in the disastrous event of a house fire, the homeowners insurance will provide coverage to rebuild the home and replace appliances that were damaged in the fire. This example is simply meant to aid the understanding of the difference between a home warranty and a home insurance policy; none of the above will supersede a consumer contract issued by an insurance carrier or home warranty company.