Home insurance pays for damage and destruction caused by outside issues. Policies may name specific perils, such as fire damage and falling trees and vandalism. Or they may provide broad coverage for most things that go wrong, but exclude coverage for specific things such as flood damage. Home warranties, on the other hand, provide coverage for certain components of a home such as appliances or HVAC units that result from wear and tear or normal use. For example, a warranty would be more likely to cover a refrigerant leak from an A/C unit while insurance would not pay for this type of issue because it would not be caused by a covered peril.