When comparing a home warranty vs. homeowners insurance, a key distinction to remember is that home warranties exclusively cover normal wear and tear. Homeowners insurance, meanwhile, covers damage to both personal belongings and the structure of the house that results from covered perils such as fire, storms, and vandalism. Insurance will not cover wear and tear, though. If a homeowner has an aging refrigerator, for instance, and needs to schedule a repair on that appliance, home warranty companies can help in that situation. Because both home warranties and homeowners insurance have their strengths, it may make the most sense to pair the two together for more extensive coverage around the home.