A home warranty protects the homeowner financially if parts of their home fail due to flaws in material or construction. Warranties don’t last forever; once the warranty period is over, the homeowner becomes responsible for any repairs.
Home insurance, meanwhile, protects the home from sudden and unexpected events. Home insurance policies cover loss from things like fires, floods, break-ins or vandalism. They specifically exclude damage caused by wear and tear or poor maintenance.
Home insurance policies don’t end at a set time the way warranties do. Instead, they are renewed annually. Every home, new and old, should always have insurance coverage.