Owning a home with a home warranty could mean a bit more protection for you. However, it can become confusing trying to figure out when you should file a home insurance claim or a warranty claim. In all situations, you can ask your insurance agent when to file a claim. Here’s some insight into the differences.
What Is a Home Warranty?
A warranty of any type is generally provided by the company selling the asset, or the company building the asset. It helps minimize risks associated with your home’s major systems, in many cases. It may help you to repair or replace components that fail. A home warranty may help if appliances or the HVAC system fail due to normal wear and tear or even in situations where they are too old.
For example, let’s say your home warranty covers the HVAC system. A few months after owning your home, you learn that the HVAC needs replacement because it is no longer efficiently working and/or not working. Your warranty may help to cover the replacement of the system if repairs are not possible. Warranty coverage varies significantly. Be sure to verify what coverage you have before filing a claim.
What About Home Insurance?
Your home insurance policy does not cover normal wear and tear to your home or the major systems within it. It covers situations that arise due to accidents or damage someone else causes to your home. These policies can help you in emergency situations to make repairs to get your home back to a safe condition. What’s significantly different here is that home insurance covers accidental occurrences whereas home warranties cover based on age and function.
In the same situation, the home insurance company probably would not cover the HVAC system repair because it was due to normal wear and tear. However, if a fire occurred due to a lightning strike and caused the damage to the HVAC system, then your insurance policy may help cover the damage.
What Should You Do?
If you’re still unsure about which policy to file a claim with, contact them both. Most of the time, your home insurance company will provide you with clear information about your coverage options and limitations right away. You can then make the right decision about what to cover.
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