Cost & Value
Home Warranty vs Home Insurance: What Each Actually Covers
Homeowners conflate these constantly, and the confusion surfaces at the worst moment: after something breaks and neither product pays.
Homeowners insurance
Insurance covers sudden, accidental loss — fire, wind, hail, burst pipes, theft, liability. It does not cover wear, age, or mechanical breakdown, and carriers deny claims routinely when the cause is traced to deferred maintenance.
Home warranty
A home warranty is a service contract covering mechanical breakdown of listed systems and appliances. It typically carries an annual fee plus a per-visit service charge, uses assigned contractors, and caps payouts per item.
- Covers: HVAC, water heater, plumbing and electrical components, major appliances
- Excludes: pre-existing conditions, code upgrades, improper prior installation, cosmetic damage
Where the gap opens
The uncovered middle is age-related degradation. A roof that fails at 25 years is neither a sudden loss nor a covered mechanical breakdown — it is deferred capital. That category is entirely on the owner, which is why a reserve schedule matters more than either product.
Documentation decides claims
Insurers increasingly ask for maintenance evidence. Dated service records and photographs are the difference between a paid claim and a denial citing neglect. Keep them in one organized place.
Frequently asked questions
Is a home warranty worth it?
It can be for homes with aging appliances and mid-life mechanical systems. For new construction or recently replaced systems, the manufacturer warranty usually makes it redundant.
Does homeowners insurance cover an old roof failing?
Generally no. Age-related deterioration is excluded; insurance responds to sudden events like storm damage.