When you are buying a home in Atlanta, it is important that you take a few precautionary steps to keep yourself protected in the process. Home insurance and a home warranty are two options that new homeowners should consider, and many people actually think that these policies are the same thing. The truth is that there are some big differences between a home warranty and an insurance policy, and you need to understand these differences because it is likely that you will want to buy both. This article is Do You Need Both Home Insurance and a Home Warranty?
What is Required?
It is required to by an insurance policy for your home. When you are going through the process to get a mortgage to finance the property, you won’t be able to qualify for the loan without an insurance policy in place.
On the other hand, it is not required to buy a home warranty. But, many people choose a warranty as well in order to stay protected in case something goes wrong with the home. A warranty can be purchased any time, although it is usually purchased when someone moves into a home.
What You Need to Know about Home Insurance
An insurance policy is designed to cover damages that occur as the result of natural disasters. For example, if a storm blows through and a tree falls on your home, then the homeowners insurance will likely cover the cost of repairs.
It is necessary to have an insurance policy, because repairs can be quite expensive depending on the damage that occurs. Keep in mind that there are different types of coverage for various homeowners insurance policies, so you need to talk with your insurance provider to understand the details about the things that are covered and the things that are not covered.
What is a Home Warranty?
When you purchase a home warranty, it covers major appliances and systems in your home. For example, if an appliance breaks down because of age, then the warranty will pay to replace the appliance. This coverage is only available when something breaks because of wear and tear, and it is important to understand that a warranty will not cover neglect.
If a problem pops up with your plumbing, HVAC, or electrical system, then you will have the peace of mind to know that the repairs will be covered by your warranty. Anytime you need something repaired through the warranty, you will typically pay for the service fee and the warranty contract will cover the rest.
Some people mistakenly think that a warranty is an unneeded cost, especially if they are looking for ways to save money. But, the truth is that this policy can be very beneficial, especially if you are buying an older home.
When you are buying a home in Atlanta, make sure that you have a trusted real estate team by your side! At Duffy Realty of Atlanta we can help you find the right home for your family. Call our office today: (678) 318-1700. We hope that you enjoyed our discussion about Do You Need Both Home Insurance and a Home Warranty?