Homeowners Insurance vs Home Warranties in Chico CA

The value of homeowner’s insurance is burned on the brains of anyone who was living in Chico, CA in 2018. That was the year of the devastating fire in Paradise, CA, just 10 miles east of Chico. Homeowners insurance was the financial salvation for many who lost so much in that terrible fire. However, the distinction between what a homeowners insurance vs home warranty covers escapes most buyers and sellers in Chico. This is an issue that can be easily put to rest.

Major Differences Between Homeowners Insurance and Home Warranty in Chico

* Homeowners insurance is a required policy. Its purpose is to protect your home and belongings from the unexpected. These include acts of God such as hurricanes and fires, as well as such things as theft and vandalism.

* A home warranty is a different animal altogether. First, the home warranty is not a required policy. Second, it protects homeowners against situations that are entirely expected – that is the inevitable breakdown of your major appliances and systems.

Let’s face it, no matter how much you spent on your major appliances and systems and no matter how well you maintain them, they will, at some point, fail. It isn’t a question of if, it’s a matter of when. And that’s where a home warranty comes into play.

A home warranty is a service contract that can be renewed on an annual basis. It covers the repair and replacement of major appliances such as refrigerators, washers, dryers, air conditioning, heating systems, etc.

Home warranties cover such things as

• Heating
• Airconditioning
• Electrical
• Plumbing
• Central Vacuums
• Refrigerators
• Washers/Dryers
• Ranges/Ovens
• Trash compactors
• Garage door openers
• Roof leakage

One of the biggest distinctions between the home warranty and homeowners insurance is that there has to be an unexpected event such as a fire for any kind of coverage to kick in on a homeowners policy. That is not the case with a home warranty.

So let’s have a little quiz…

Would a home warranty or homeowners insurance cover the following?

1. A windstorm brings down a tree that damages your roof.

2. Your refrigerator and dishwasher die due to normal wear and tear and time.

3. Your hot water heater stops working.

4. There is a major windstorm resulting in a blackout. The power comes back on and causes a surge that damages your refrigerator and dishwasher.

Answers: 1. Homeowners, 2. Warranty, 3. Warranty, 4. Homeowners. Congratulations if you got them all right!

Chico homebuyers like the peace of mind that a home warranty gives them

Home sellers in Chico should take note that purchasing a new home is a huge investment. Homebuyers can be gun shy because purchasing a home is generally the largest single investment people make. With the stakes so high, it is natural for buyers to have a certain amount of fear and indecision. One way to diffuse such concerns is to offer your buyer a home warranty for a year. This can be a major selling point that might just get that hesitant buyer off the fence to sign that contract.

If you are in the market to buy or sell a home in Chico CA and would like to sit down and discuss your options with a local specialist, feel free to reach out to Cindy Hasket.