What Every Homeowner Should Know About Insurance and Warranties
Understanding the nuances of homeowners insurance and home warranties is essential for protecting your investment and ensuring peace of mind.
While both provide valuable protection, they serve different purposes. This guide will clarify their distinctions and introduce key terms to help you confidently navigate these concepts.
Homeowners Insurance vs. Home Warranties
Homeowners insurance is a policy that covers damage to your home's structure and personal belongings due to unforeseen events like fires, storms, or theft. It's typically required by mortgage lenders and safeguards against significant financial loss from unexpected disasters.
In contrast, a home warranty is a service contract that covers the repair or replacement of major home systems and appliances that fail due to normal wear and tear. This includes items like HVAC systems, plumbing, and kitchen appliances.
Home warranties are optional but can be a worthwhile investment, especially for older homes or those with aging appliances. However, with new construction homes by Ernest Homes, a 2-10 Homebuyers Warranty is included to give you peace of mind.
Key Terms to Know
To better understand your coverage options, familiarize yourself with the following terms:
- Premium: The amount you pay, typically annually or monthly, for your insurance policy or home warranty.
- Deductible: The out-of-pocket amount you must pay before your insurance or warranty coverage kicks in.
- Coverage Limit: The maximum amount an insurer or warranty provider will pay for a covered loss.
- Exclusion: Specific conditions or circumstances that are not covered by your policy or warranty.
- Claim: A formal request to your insurance or warranty provider for reimbursement or service for a covered loss or repair.
- Liability Coverage: Part of homeowners insurance that protects you against legal responsibility for injuries or damages to others while on your property.
- Service Call Fee: A fee paid to a home warranty provider each time a service technician is dispatched to your home.
Ernest Homes' Warranty Program
Ernest Homes stands by the quality and craftsmanship of our homes. To provide our homeowners with added assurance, we offer a comprehensive warranty program. This program is designed to address any issues that may arise after you move in, ensuring that your new home remains a source of comfort and pride.
We protect our valued homeowners with the industry's best warranty program. On the day of closing, your new Ernest home comes with a 2-10 Home Buyers Warranty that includes a one-year workmanship, two years systems, and 10-year structural warranty.
You will receive a warranty booklet that provides specific coverage. Check out our warranty info page to learn more detailed information about our warranty coverage.
At Ernest Homes, we believe in building not just quality homes but also informed homeowners. Understanding your insurance and warranty options is a crucial step in safeguarding your investment and enjoying your new home with confidence.
If you're considering a new home, we invite you to explore our available homes and discover the quality and craftsmanship that define Ernest Homes. Contact us today to schedule a tour and learn more about how we can help you find the perfect home for your needs.
