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Home Warranty? Home Owner's Insurance? What's the Difference?
3/22/2014
Brought to You by Old Republic Home Protection
You understand how overwhelming it can be to buy a home for the very first time. New clients are often bombarded with concepts and terms they’ve never heard. In fact, even more seasoned home buyers and sellers can become confused. For instance, many will assume a home warranty serves the same purpose as homeowner’s insurance.
What’s the difference? A home warranty is a service contract, not an insurance policy, and it is designed to repair or replace major systems and appliances that become inoperable due to normal wear and use.
By contrast, homeowner’s insurance is designed to compensate or reimburse a homeowner for covered damages or losses incurred by some unknown or contingent event.
What does that mean in the real world? If a water pipe ruptures and the house is flooded, for example, the home warranty may cover the repair of the pipe itself, while the homeowner’s insurance may cover any secondary damage to the home. As such, a Home Warranty Plan and homeowner’s insurance can work together, offering your clients budget protection and peace of mind.
Old Republic Home Protection is an industry leader among home warranty providers, and are dedicated to your success. Visit www.ORHP.com to learn more about how an Old Republic Home Warranty may protect your reputation and help you build your business.