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How a Home Warranty Compares to Homeowners’ Insurance in Newark, DE

Some people have questions about the difference between a home warranty and homeowners’ insurance in Newark, DE. It’s a common query we get at Broadbent Insurance, Inc. We’re going to talk about both here to clear up the confusion.

Many people wish to know what a home warranty is and if they need it when they have homeowners’ insurance. A warranty is designed to cover specific aspects of your property and pay for necessary repairs. You can consider it as a service contract to assist with the expensive repairs or replacements.

Homeowners’ insurance, on the other hand, can be looked at as a package policy that covers property damage as well as legal liability for injuries or damage caused by policyholders to others. It protects against interior and exterior destruction, along with the theft or loss of possessions. This policy pays for a hotel or rental home if you are forced out of yours during repairs or reconstruction.

A simple way to look at the difference is that insurance covers against the unexpected. A home warranty protects against incidents that may be reasonably expected to occur, such as an appliance failing. What you choose depends on whether you want comprehensive coverage or targeted protection.