OC Homeowner Education · CMR
Home Warranty vs.
Home Insurance.
What's the difference — and do you need both?
They're not the same thing.
Most homeowners use these terms interchangeably. They shouldn't. Home warranty and home insurance cover completely different things — and if you only have one, there are gaps in your protection you probably don't know about.
What home insurance covers.
Home insurance protects the structure of your home and your belongings against unexpected events — fire, theft, storms, flooding (with a separate policy), and liability if someone gets hurt on your property. It's typically required by your lender. Without it, you can't close on a home.
What a home warranty covers.
A home warranty covers the systems and appliances inside your home — HVAC, plumbing, electrical, water heater, refrigerator, dishwasher. When something breaks down from normal wear and tear, a warranty pays for the repair or replacement. Insurance won't touch this.
The gap nobody talks about.
Your AC goes out in July. You call your insurance — they say no, that's wear and tear. You call your warranty — covered. Your roof gets damaged in a storm. You call your warranty — they say no, that's a weather event. You call your insurance — covered. Each one covers what the other doesn't. That's why you need both.
What does it cost in OC?
Home insurance in Orange County typically runs a few thousand dollars a year depending on your home's value and location. A home warranty runs a few hundred dollars a year, plus a small service fee each time you use it. For most homeowners it's one of the smartest low-cost protections you can carry.
Protect what you worked hard for.
Whether you're buying your first home or you've owned in OC for years, understanding what you're covered for — and what you're not — is one of the most important things you can do as a homeowner. We help OC homeowners understand every option. That's what we do.
Have questions about your coverage?