If you’re a homeowner, then you probably have homeowner’s insurance. But you probably also have warranties on a lot of your home’s features. So what exactly is the difference between a warranty and insurance?
Source: Freedigitalphotos
First of all, the one thing that warranties and insurance share is that they will help you to replace or repair parts of your home or the contents of your home. Both also have deductibles, which is a specified amount of money that you have to pay before either kicks in.
The biggest difference is that insurance will assist in replacement or repair after your home or its contents has been damaged by covered perils, whereas warranties will cover the repair or replacement of covered components if they’ve been damaged or broken by normal use or age. Home warranties generally cover major systems, such as your plumbing, and appliances.
Here’s an example of how they work. If your furnace stops working, a warranty can help cover replacement costs. If a problem with the furnace leads to your home catching fire, your insurance will most likely cover the damages.
Know the difference between insurance and warranties. Contact Parker Young today for advice on disaster preparedness in Georgia.