When purchasing a new Tucson home, it’s important to do in-depth research on all facets of the homebuying 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 a home warranty versus homeowners insurance below to educate yourself on your options.
Home Warranty vs Homeowners Insurance
A home warranty is designed to cover the cost of repairs and replacements of larger appliances and crucial systems in your Tucson 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.
Homeowners insurance pays for any accidental damages and losses 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 American Home Shield, the average annual cost of a homeowners insurance policy ranges between $300 and $1,000. Usually, the lender asks you to obtain a policy for your Tucson home before the mortgage is issued. Make sure to keep in mind that each type of coverage in the policy is subject to a limit. In most cases, you will have to pay a deductible.
Rebecca Schulte, Schulte Real Estate Group, Your Source for Tucson Real Estate