Home Warranty Vs. Breakdown Coverage: Understanding The Differences
Welcome to Varde Insurance! As part of our mission to help you navigate the often complex world of insurance, we've put together this guide that elucidates the difference between Home Warranty and Breakdown Coverage. Both are valuable forms of protection for homeowners, but they cater to different aspects of home maintenance and repairs.
What is A Home Warranty?
A Home Warranty is a service contract that covers the repair or replacement of many of the most frequently occurring breakdowns of home system components and appliances. It bridges the gap that home insurance doesn't cover, providing a safety net for things like your HVAC system, electrical system, plumbing, washer, dryer, kitchen appliances, and sometimes even your pool or spa.
The great advantage of a Home Warranty is its simplicity. Rather than managing a multitude of different protection plans for your various systems and appliances, a Home Warranty wraps these coverages into a single, convenient package. It’s ideal for people who are purchasing used homes where the condition of appliances might be uncertain.
What is Breakdown Coverage?
Breakdown Coverage, on the other hand, is more specific. It typically refers to the coverage provided for individual systems or appliances against mechanical or electrical breakdown. This might be offered as an optional extra on your homeowners insurance policy, and it's designed to protect you from sudden, unexpected malfunctions in key systems and appliances.
The advantage of Breakdown Coverage is its precision. Instead of a general pool of coverage like a Home Warranty provides, Breakdown Coverage allows you to select and pay for protection only for the systems and appliances you're most concerned about. It’s ideal for those who have newer homes or recently replaced major systems or appliances.
Home Warranty Vs. Breakdown Coverage: Key Differences
While both provide valuable protection for homeowners, here are the main differences between the two:
Coverage Scope: A Home Warranty typically covers a wider range of systems and appliances under one plan, while Breakdown Coverage is more individualized.
Payment Structure: Home Warranties generally involve a yearly contract with a flat fee, along with service fees for repairs. Breakdown Coverage is often added to a homeowner’s insurance policy for an additional cost.
Service Providers: With a Home Warranty, service providers are usually pre-selected by the warranty company. With Breakdown Coverage, you may have more flexibility in choosing your repair technician.
New vs. Old Homes: Breakdown Coverage can be more suited for newer homes with newer appliances, whereas a Home Warranty can provide peace of mind for older homes with appliances that might be nearing the end of their lifespan.
At Varde Insurance, we know every home and homeowner is unique. Understanding the differences between Home Warranty and Breakdown Coverage can help you choose the protection plan that best suits your needs. Contact us today to discuss these options further and discover how we can help secure your home's future.
Want a Quote on Breakdown Coverage?
grant@vardeinsurance.com
(405) 757-1237
2216 NW 164th St, Suite A
Edmond, OK 73013