Home Insurance vs Home Warranty: What’s the Difference in 2025?

Home Insurance vs Home Warranty: What’s the Difference in 2025?

Both protect your home — but in very different ways. In 2025, homeowners are often confused between home insurance and home warranty.

🏠 Home Insurance: The Big Stuff

Covers damages from unexpected events like:

• 🔥 Fire or smoke
• 💦 Water damage (pipes burst)
• 🌪️ Storms, hail, lightning
• 🚪 Theft or vandalism
• 🧱 Structural damage
• 🏘️ Liability if someone’s injured on your property

Required by mortgage lenders. Doesn’t cover wear & tear or appliance failures.

🔧 Home Warranty: The Everyday Fixes

Covers repair or replacement of:

• 🧊 HVAC systems
• 🧼 Washer/Dryer
• 🚿 Water heaters
• 🍳 Kitchen appliances
• 🧰 Electrical systems
• 🚽 Plumbing systems

Not required — but great for budgeting and peace of mind.

📊 Quick Comparison Table

Feature	Home Insurance	Home Warranty
Covers Structure	✅ Yes	❌ No
Covers Appliances	❌ No	✅ Yes
Covers Disasters	✅ Yes	❌ No
Covers Normal Wear	❌ No	✅ Yes (some parts)
Required by Mortgage	✅ Yes	❌ No
Typical Cost (Annual)	$800–1,500	$300–700

💡 Do You Need Both?

Yes, if you want full peace of mind.

• Home insurance = catastrophic events
• Home warranty = day-to-day repairs

🏡 Best Home Warranty Providers 2025

• Choice Home Warranty: 24/7 claims, broad appliance cover
• American Home Shield: Customizable plans, long history
• Select Home Warranty: Competitive pricing, fast response