When purchasing a new Ventura County home, you must do in-depth research on all facets of the homebuying process. You need to understand 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.
The Difference Between Homeowners Insurance and a Home Warranty
Homeowners insurance pays for any accidental damages and loss that are caused by fire, lightning strikes, windstorms, and hail. This includes damage from wildfires, which is important for California homeowners who face threats from wildfires every year. However, damage from earthquakes and floods is typically not covered. It also covers the replacement of personal property in case of theft or damage. Additionally, it covers you for liability if a person were to get injured in your home or on your property. According to V Home Insurance, the average annual cost of a homeowner’s insurance policy in Ventura County ranges between $545 and $738 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 contains a limit. In most cases, you also 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 is not 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. Also, it does not cover damages if appliances were not maintained properly or if the damage is from a fire or other disaster.