How a Home Warranty Complements Homeowner’s Insurance

 When it comes to protecting your home, most people immediately think of homeowner’s insurance. While that’s a critical layer of protection, it’s not the whole story. Homeowner’s insurance covers damage from fire, theft, and certain natural disasters—but what about the things inside your home that break down from everyday use?

That’s where a home warranty comes in. Think of it as a partner to your insurance policy. While insurance handles unexpected damage, a home warranty steps in when your home’s appliances or systems fail due to regular wear and tear.

In this guide, we’ll explore how these two types of protection work together, why both are essential for full coverage, and how to evaluate the house warranty cost against its long-term benefits. We'll also discuss how a home warranty acts as a form of household appliance insurance, filling the gaps your standard policy leaves behind.

What Does Homeowner’s Insurance Cover?

Homeowner’s insurance is designed to cover your home’s structure and belongings in the event of sudden or accidental damage caused by things like:

• Fire or smoke
  
  

• Storms, hail, or lightning
  
  

• Theft or vandalism
  
  

• Water damage from burst pipes (but not floods)
  
  

It also typically includes liability protection if someone is injured on your property. But while this policy is great for catastrophic events, it doesn’t cover mechanical failure or routine breakdowns of home systems and appliances.

If your air conditioner fails in the middle of summer or your washing machine gives out unexpectedly, your homeowner’s insurance won’t cover the repair or replacement. That’s where a home warranty shines.

What Is a Home Warranty?

A home warranty is a service contract that covers the repair or replacement of your home’s systems and appliances when they break down from normal use. Coverage often includes:

• Heating and cooling systems (HVAC)
  
  

• Plumbing and electrical systems
  
  

• Water heaters
  
  

• Major appliances like refrigerators, ovens, dishwashers, washers, and dryers
  
  

While technically not an insurance product, many homeowners consider it a type of household appliance insurance because it protects the items you rely on every day.

Why You Need Both: A Powerful Combination

1. Comprehensive Coverage

Homeowner’s insurance and home warranties address different types of risks:

• Insurance protects against sudden, external events.
  
  

• A warranty handles internal breakdowns from age and wear.
  
  

When used together, they create a safety net that keeps you covered no matter what goes wrong.

2. Financial Protection from Big Repair Bills

The house warranty cost typically ranges from $400 to $700 per year, with an additional service fee (around $75–$125) each time you call for a repair. Compare that to replacing a furnace ($4,000+), a fridge ($1,500+), or an HVAC unit ($5,000+), and the value becomes clear.

Insurance may help if a fire destroys your kitchen—but it won’t help if your oven just stops heating one day. Your home warranty fills that gap.

3. Peace of Mind

When you have both homeowner’s insurance and a home warranty, you’re prepared for the unexpected and the inevitable. You won’t lose sleep wondering how to cover the cost of repairs or replacements. You’ll know exactly who to call and what your costs will be.

Real-Life Scenario: How the Two Work Together

Let’s say you come home to find your basement flooded. After an inspection, you learn the culprit is a worn-out water heater that finally gave out.

• Homeowner’s Insurance: Might cover the water damage to flooring and walls.
  
  

• Home Warranty: Would cover the cost of replacing or repairing the water heater itself.
  
  

Without both, you’d be left paying for either the damage or the appliance replacement entirely out of pocket.

Understanding the House Warranty Cost

Many new homeowners hesitate to buy a warranty because they worry about the house warranty cost. But the reality is that it’s a small price to pay for what it covers:

• Most plans range from $35 to $60 per month.
  
  

• Service fees are predictable and far less than the cost of a full repair.
  
  

• Many providers, like ServicePlus, offer tiered plans so you can match your coverage to your budget.
  
  

And unlike insurance, you can typically add coverage for things that are unique to your home, like a second fridge, pool, or septic system.

Choosing the Right Warranty Plan

If you’re considering a home warranty, here’s how to choose the right plan:

• Evaluate your home’s age and condition: Older systems are more likely to fail.
  
  

• Check what’s included: Not all warranties cover every appliance or system.
  
  

• Understand the limits and exclusions: Know the maximum payout per item and any conditions for coverage.
  
  

• Compare providers: Look at customer reviews, service response times, and the network of contractors.
  
  

A good home warranty provider should make the claims process simple and reliable, offering licensed professionals to handle your service needs.

Final Thoughts

A home warranty isn’t a replacement for homeowner’s insurance—it’s a complement. Together, they form a strong line of defense against both catastrophic damage and everyday breakdowns. Homeowner’s insurance protects your home’s structure and personal property from major disasters, while a home warranty provides affordable, consistent help when the systems and appliances you depend on inevitably wear out.

With both in place, you’re not just protecting your house—you’re protecting your peace of mind and your bank account.

Ready to protect your home from every angle? Learn more about how a home warranty can serve as household appliance insurance, and explore affordable house warranty cost options with ServicePlus Home Warranty today.