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Homeowners Insurance vs. Home Warranty

June is National Homeownership Month! When you choose to work with our team at William Raveis Vermont Properties, our experienced agents will walk you through every step of your real estate transaction. Homeownership is a big step whether you are a first-time homebuyer or purchasing your second home. We know there is a lot to absorb when navigating your transaction, but our knowledgeable team members can answer all of your questions with ease and clarity.


A commonly asked question that our team often answers is what is the difference between a home warranty and homeowners insurance. While the two may seem similar at a glance, they offer distinct types of home protection that you must know.


What’s the biggest difference? Quite simply, homeowners insurance is generally required when purchasing a home, while a home warranty is entirely optional. Insurance is typically required by most mortgage lenders before taking out a home loan. In other words, home insurance is property insurance that protects the home’s structure and the owner’s personal property. Whether your property is lost, stolen, damaged by a natural disaster, or an accident, your homeowners insurance will cover it. It’s important to note that it does not cover general wear and tear. A home warranty is s service contract that protects your home’s appliances and systems through discounted repair and replacement services. It’s more like a precautionary measure against pricey and unforeseen home repairs. In most cases, a home warranty is not necessary when working with a mortgage lender, but you may elect it to protect your property. 


Our team can walk you through insurance questions and every step of your real estate transaction. Contact our team today to start shopping for your new home and experience an unmatched real estate service. Reach out to our office at (802) 228-8877 or visit www.vtprop.com and sign-up for market updates today!

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