The easiest way to understand the difference between a home warranty policy and a homeowners insurance plan is that a home warranty is a maintenance type plan, homeowners insurance is not.
What does a warranty cover? What a loaded question? Are you trying to trick me? That's like asking; "what is the difference between a Farmers Insurance Policy and an Allstate plan?" Darned if I know the difference.
Here are some of the things I expect a home warranty to cover when I represent a buyer buying a home and I get to recommend to my buyer which company they may want to choose.
The warranty should cover these items and more in case they break down in the first year.
Some limits apply.
Plumbing- Stoppages, leaks, and breaks of water, drain, gas, vent and sewer lines.
Valves including the shower diverter.
Electrical- Switches, fuses, circuit breakers including GFI's The oven/range should be covered as well as a built in microwave; ceiling fans, attic and exhaust fans, hot water heaters, the fridge, pool, heating and cooling systems etc.
I expect these things and more.
A recent client of mine discovered a leak in the wall that was missed by all.
For one $55 dollar service fee the repair of the leak, and the sheetrock was replaced.
Now the texture and paint was not included however all it cost my client was $55 dollars and the sheetrock was at least a two day repair.
Where can you find a plumber to open a wall and fix a leak for $55 dollars? Another client of mine needed to have the oven door replaced.
The glass had failed after about 6 months.
"No worries, happy to" said the warranty company.
In most cases a service charge must be paid by the homeowner.
I hope this explains the main difference between a warranty policy and a homeowners policy.
If not drop me a note.