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The Difference Between Home Warranty and Home Insurance

When purchasing a new home, it’s important to do in-depth research on all facets of the home-buying process and we're here to help!

One thing you’ll need to understand is how to best protect yourself and your investment if anything were to go wrong. Home Warranty and Home Insurance are both vital tools that can protect you in case of any misfortune.

So let's get into each, explain what it is, why you may need it, and what's the difference:


Homeowners insurance in most cases pays for any accidental damages and losses that are caused by fire, lightning strikes, windstorms, and hail, however, damage from earthquakes and floods is typically not covered. It also covers the replacement of personal property in case of theft or damage and liability if a person were to get injured in your home or on your property.

According to American Home Shield, the average annual cost of a homeowner's insurance policy ranges between $300 and $1,000, and the bank usually asks you to obtain a policy before the mortgage is issued. Make sure to keep in mind that each type of coverage in the policy is subject to a limit and, in most cases, you will have to pay a deductible.

It's very important to take your time to shop when you're buying Home Insurance since different policies will cover different things. Also, make sure you get quotes and ask for the CLUE report (Comprehensive Loss Underwriting Exchange) before or within the option period.

A CLUE report shows the claims filed for any house for the past seven years. It lists claims on the home. Doing so will help you with the following:

  1. You will find out exactly how much your insurance will be (the more claims filed, the higher the insurance), and thus be able to better calculate your mortgage and not have a surprise towards the end of the transaction.

  2. You will find out whether the home is insurable or not, early on and before you get stuck in a contract (Yes, some homes are not insurable).

  3. You will find out about any claims filed before, when, and if the claims were closed. This will help you ask the right questions and know if there are any issues that still remain unfixed and/ or if something was not disclosed for any reason.

For the best service and quotes, contact a broker like GooseHead Insurance, led by Phil Delgado


A home warranty is designed to cover the cost of repairs and replacements of larger appliances and crucial systems inside your home that may fail or break due to age and wear and tear.

This includes but isn’t limited to HVAC, electrical, or plumbing components, kitchen appliances, and your washer and dryer. With a home warranty, you are required to pay premiums year-round, even if you do not use it, and it won’t cover damages if appliances were not maintained properly or if the damage is from a fire or other disaster which normally be covered by Home Owners Insurance.

There are many plans and options out there, we recommend that you shop around for the best-suited option for you.

Not sure who to call, try one of our recommended Partners Shannon Lopez

Have any other questions regarding Home Warranty and Home Owner's Insurance? Give us a call, send us a text, or shoot us an email, we would love to answer all your questions.

We hope the above information helps you!

For more information on Real Estate, buying, selling, or investing, don't hesitate to reach out, we would love to help!

Gabriel and Kristina

The Zachary Team and San Antonio's REALTOR® Couple



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