Home Warranty vs. Home Insurance-Do you need a Home Warranty?

75% of American Women report being their households usual meal preparer.  (2016, USDA)

75% of American Women report being their households usual meal preparer. (2016, USDA)

According to a survey completed by the USDA which began in 2014 and completed a few years later, Americans spend an average of 37 minutes preparing and serving food and cleaning up in their homes. Increased usage of appliances requires more maintenance and upkeep for longevity. A Home Warranty may assist in curbing a large immediate expense on the household budget. Read full report here. Is a Home Warranty better to purchase before closing on a home purchase or after? We review Home Insurance questions below.

First American Home Warranty Insurance offers the following information on the differences between a Home Warranty and Home Insurance:

Home Warranty-protects many of the home systems and appliances that you rely on daily. When these systems and appliances inevitably fail over time due to normal wear and tear, a home warranty will pay to repair or replace them. You will pay a service fee each time you request service, which ranges from $50 - $100. 

Home Insurance-is usually required by your mortgage lender and protects the structure of your home against risks such as damage from severe weather and theft, secondary damages resulting from some system and appliance failures, as well as protecting you personally from liability in the event that someone is accidentally injured on your property. Each time you make a claim on your home insurance you pay a deductible cost, which is commonly $500 or $1,000. 

Disclaimer: TRU Financial Services encourages our buyers and borrowers to purchase Home Warranty Insurance when buying a home.

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