Home Warranty vs. Home Insurance

Madeira East - Viana II - home warranty vs home insurance

Whether you’re buying a townhome in Chicago or luxury home in Florida, knowing your investment is safe and sound is vital to your peace of mind. Two products, Home Warranty & Homeowners Insurance, are there to protect you when something goes wrong.

But it’s very important that homeowners understand the difference between these policies, as well as their limitations.

To help you shop with confidence, Taylor Morrison has put together this simple guide.

What’s the Difference between Home Warranty and  Homeowners Insurance?

The primary distinction between the two policies comes down to the source of the damage:

  • Basic homeowners insurance will pay to repair or replace (less deductible) loss from “covered perils.” Typically these include damage from fire, wind, hail, explosions, lightning and civil unrest.  Exclusions from basic coverage typically include damage from flood, earthquake and routine wear and tear.
  • Home Warranty protects against early failure of appliances, miscellaneous product failure or issues related to electrical, water, plumbing or heating/cooling systems.

General wear and tear is covered by Home Warranty whereas Home Insurance only kicks in when there is a bona fide emergency caused by external forces.

Please note that both policies carry deductibles and limitations. Be sure to read through and familiarize yourself with your policy to know what is/isn’t covered.

You Should Know: Home Warranties can be purchased from third parties on the open market to continue covering your home past the expiration date of the policy provided free of charge by Taylor Morrison.

What’s included in my Taylor Morrison Home Warranty?

There are many reasons why buyers choose Taylor Morrison. The fact that we include a Limited Home Warranty standard with the sale of every new home is one of them.

If you need to file a warranty claim during the warranty period, we will repair the problem quickly – and with a smile!

The warranty includes coverage for general construction quality and the following systems:

  • Heating/Cooling
  • Water/Plumbing
  • Fixtures
  • Appliances
  • Garage Door
  • Electrical
  • Roof

And if you have an emergency you can contact directly your specific emergency trade contractor located on the sticker in the kitchen cabinets.

Refer to your Limited Warranty Manual for details on terms, limitations and exclusions.

When Should I Buy Home Insurance?

Your lender will always require that a homeowners insurance policy be purchased prior to closing.

Even if you are paying in cash and not obligated to do so, it’s recommended to buy the policy before your closing date to guarantee coverage from the moment you take full ownership of the property.

Still Have Questions?

Answers to your inquiries are just a contact form away! We’ll get back to you as quickly as possible.



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