It was probably worrying when you found out you needed home insurance.
But here's the thing:
It probably became more confusing when you found out that you might also need a home warranty plan. ] These two products are often confused as the same thing but they are completely different.
In this post today I will clear up the confusion between home warranty vs home insurance and when and how to use each product.
What is Homeowners Insurance?
Homeowners insurance is simply protection against loss of your home, for the structures around your home, for your personal property or for personal liability
Even if there is no set necessary guidelines regarding home insurance, your bank or Lenders require you to get coverage before they give you a mortgage.
These insurances are renewed on an annual basis and can cost between $ 300 and $ 1500 per year even though the average cost of home insurance is about $ 1,083 per year.
Each insurance comes with a standard deduction for homeowners and depending on the company and where you live, it can also come with deductions for wind and hail or hurricane.
If you need to make a claim, an insurance adjuster will come to your home and fill out an application form to repair or replace damaged items. your deductible and issue a payment for the remainder of the balance.
Pros and Cons of Home Insurance
Below we discuss some of the pros and cons of buying a home insurance: