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7 Things Homeowner’s Insurance Often Doesn’t Cover

Homeowners insurance is necessary, especially if you have a mortgage, but what do you do about what your policy won't cover? Find out how a home warranty can help.

homeowner insurance vs home warranty

Having home insurance is not only smart, it’s usually required as part of the home mortgage process. A home insurance policy covers accidental damage to your home and belongings due to theft, storms, fires, and some natural disasters. There are four primary areas covered under home insurance policies: the interior and exterior of your home, personal property in case of theft, loss or damage, and general liability that can arise when a person is injured while on your property.

It’s important for homeowners to realize that home insurance was not designed to cover some common home system and appliance malfunctions that can sometimes be expensive to fix. While home insurance policies differ, and you should consult yours for specifics, here are seven examples that generally would not be covered by a home insurance policy:

  1. Your air conditioning starts blowing warm air. 
  2. The thermocouple goes out on your water heater, and there’s no hot water in the house.
  3. You turn on the shower, but only a trickle of water comes out of the faucet head.
  4. Your oven won’t reach pre-set temperatures.
  5. Your garbage disposal won’t grind.
  6. Your dishwasher has standing water that won’t drain.
  7. Your electrical panel is blowing fuses regularly or not operating properly. 

While these seven situations probably wouldn’t be covered under most home insurance plans, they would likely be covered under many home warranty plans, assuming the problems are because of wear and tear, age or another circumstance covered under the terms of the home warranty service contract. A home warranty is a service contract that provides for repair or replacement of your system components and appliances that fail due to age and normal wear and tear. Unlike home insurance, the addition of a home warranty is elective, but it’s a prudent purchase for homeowners to consider.

home warranty vs homeowner insurance

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Providing different types of protection, home insurance and a home warranty can dovetail to give you the best security and coverage. Home insurance can protect you from the things that might happen, and a home warranty can protect you from the things that will happen, because home systems and appliances eventually fail. Together, you can give your home and your budget the maximum protection for your home and budget and minimize worry for yourself. 


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