Home Warranty
Home Warranty vs. Homeowners Insurance
Doesn't homeowners insurance cover breakdowns? Not necessarily. Homeowners insurance covers what might happen to your home, like damage from fires, theft or storms. Home warranties cover what will inevitably happen to your home, like system and appliance breakdowns due to normal wear and tear.
Protecting your home, inside and out
Here are examples of what a home warranty covers vs. what homeowners insurance covers:
Home warranties cover what WILL happen:
Homeowners insurance covers what MIGHT happen:
Broken AC
Theft
Home warranty plans cover what WILL happen
- Broken A/C
- Clogged pipes
- Leaky water heater
- Overflowing toilet
VS.
Homeowners insurance covers what MIGHT happen
- Theft
- Fire damage
- Storm damage
- Floods
This is coverage you’ll use
You’re 25 times* more likely to use a home warranty than your homeowners insurance. Why? Because unlike insurance, we cover the things you use every day and can’t do without. To learn more, visit our Home Warranty vs Home Insurance blog post.
*Calculated based on the 2025 AHS claims data compared to insurance claims from Insurance Information Institute.
Easier Homeownership Awaits
Home warranty + Homeowners Insurance
Let’s face it: life happens. Many homeowners prefer to supplement their homeowners insurance by also purchasing an American Home Shield home warranty plan to grant full peace of mind. Because a home warranty gives you only one number to call to handle those costly home repairs, saving you time and protecting your wallet.
Thinking about coverage?
Sounds like a plan. Find the warranty that fits you best.
Frequently Asked Questions
Homeowners insurance covers things that might happen like theft, fire and storm damage, and flooding. Home warranty plans cover things that will inevitably happen like heating and AC, electrical, plumbing, and kitchen and laundry appliance breakdowns. A home warranty is a great way to protect your budget and have peace of mind.
- The interior of your home
- The exterior of your home
- Personal property in case of theft, loss, or damage
- General liability that can arise when a person is injured while on your property
Generally, a home warranty plan offers coverage for the parts and components of your kitchen appliances, washer and dryer, and major home systems such as your heating and AC, electrical and plumbing systems. Coverage also includes repairing or replacing covered items, subject to the limitations and exclusions in your plan agreement.
Home warranties typically have a 12-month plan agreement term and can be purchased for a low monthly cost. A home warranty is purely elective, but it’s a smart purchase. Homeowners insurance is typically mandatory in order to obtain a mortgage loan and is renewed annually.
Home warranty coverage can potentially save you hundreds or even thousands of dollars, and it helps you avoid the headache of finding a trusted service Pro to make the repairs.
For American Home Shield members, a home warranty includes coverage of major components of up to 27 important appliances and home systems, home maintenance services like discounted seasonal HVAC tune-ups, and optional add-ons to customize your coverage.
Don't Worry. Be Warranty.
Have a plan for your home when things don't go according to plan
Shop Home Warranties