As a realtor, another thing I'm often asked about is the difference between homeowners insurance and a home warranty, so here's a breakdown of the two.
Homeowners insurance protects the home from things like fire, smoke, theft, fallen trees or damage caused by weather or a natural disaster; protection from things that MIGHT happen.
A home warranty, on the other hand, protects your actual budget when it comes to repairs for appliances & home systems break down from wear & tear like your HVA system, plumbing, electrical, etc.; protects from things that WILL happen.
A home warranty will also cover warranty on parts of your kitchen appliances, washer & dryer, electrical, etc., or replacement costs if they can't be repaired.
Are both homeowners insurance and a home warranty required to purchase a home?
If you own your home with no mortgage, homeowners insurance isn't required. If you have a mortgage on your home, your lender will likely require you to have a homeowners insurance policy as part of the loan agreement.
Home warranties are NOT required, but HIGHLY RECOMMENDED.
Hope this answered some of your questions as it relates to homeowners insurance and home warranties.
As always, happy house shopping.
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