When purchasing a new luxury NJ home, it is important to do in-depth research on all facets of the home buying process. One thing you’ll need to understand is how to best protect yourself and your investment if anything were to go wrong. Check out the information on homeowners insurance versus home warranty below to educate yourself on your options.
Homeowners Insurance vs Home Warranty
Homeowners insurance pays for any accidental damages and loss that are caused by fire, lightning strikes, windstorms, and hail. However, damage from earthquakes and floods is typically not covered. It also covers the replacement of personal property in case of theft or damage and liability if a person were to get injured in your home or on your property. According to V Home Insurance, the average cost of a homeowners insurance policy for a Westfield NJ home runs about $1664 per year. The bank usually asks you to obtain a policy before they issue your mortgage. Make sure to keep in mind that each type of coverage in the policy is subject to a limit and, in most cases, you will have to pay a deductible.
A home warranty is designed to cover the cost of repairs and replacements of larger appliances and crucial systems in your home that may fail or break due to age and wear and tear. This includes but isn’t limited to HVAC, electrical, or plumbing components, kitchen appliances, and your washer and dryer. With a home warranty, you are required to pay premiums year-round, even if you do not use it. Plus, it won’t cover damages if appliances were not maintained properly or if the damage is from a fire or other disaster. According to Forbes Home, homeowners pay an average of $50 to $60 per month for a typical home warranty. Additionally, the warranty companies charge a fee whenever you call them out for service.