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    How does a home warranty work

    Nowadays, many homes in America have a warranty policy to protect the owner’s possessions. If you are buying a new home from a real estate agent or previous owner, it’s recommendable to purchase a warranty policy to complement your existing home insurance cover. This contract covers the costs of repairs and replacement of damaged systems and appliances. Home insurance vs Home warranty While both home warranties and insurance cover unforeseen risks, there’s a difference in the two considering that the first case only covers damages caused by typical wear and tear or mechanical breakdown, whereas home insurance is meant for disasters like theft, fire, flooding and natural calamities. A warranty is designed to meet the expenses of various household items…

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