Home Warranties vs. Home Insurance: Know the Difference
Many Residents confuse home warranty with home insurance. They're completely different:
Home Insurance:
- Covers sudden, accidental damage (fire, theft, wind, lightning)
- Is REQUIRED if you have a mortgage
- Filed with your insurance company
Home Warranty:
- Covers mechanical breakdown of systems and appliances
- Is OPTIONAL
- Filed with the warranty company
Both are valuable, but they protect different things.
What a Typical Home Warranty Covers
Most home warranties include:
- AC/Heating systems
- Water heaters
- Plumbing
- Electrical systems
- Kitchen appliances
- Pool/spa equipment (add-on)
Per-service call cost: Typically $50–$100
What's NOT covered:
- Pre-existing conditions (known issues before policy purchase)
- Lack of maintenance (ignored annual AC service)
- Items under manufacturer's warranty
- Cosmetic damage
- Asbestos removal
How to File a Warranty Claim
Step 1: Call your warranty company's service line Step 2: Describe the problem Step 3: Warranty company dispatches a contractor Step 4: Pay the service call fee (often $75) Step 5: Contractor either repairs or the warranty company covers repair costs
Common Claim Denials (and How to Avoid Them)
| Reason for Denial | Prevention |
|---|---|
| Pre-existing condition | Disclose all known issues at purchase |
| Lack of maintenance | Keep all service records (AC filter changes, etc.) |
| Not covered item | Review your policy before claiming |
| You're not the owner | Some warranties don't transfer to new owners |
| Expired policy | Renew before expiration |
Home Warranty vs. Calling HALOFIX: When to Use Each
Use your home warranty if:
- You have an active policy
- The item is covered
- You have time to wait for dispatch
Call HALOFIX if:
- You don't have a warranty
- Your warranty doesn't cover the issue
- You need emergency service (24/7)
- You want transparent upfront pricing
- You prefer to choose your contractor
HALOFIX Heroes are often faster than warranty dispatches and you get to choose your specific contractor.
How to Choose a Home Warranty
Questions to ask:
- What systems and appliances are covered?
- What's the per-service-call fee?
- Does the policy transfer to new owners?
- What's the max payout per year?
- Are there waiting periods after purchase?
Popular home warranty companies:
- American Home Shield
- First American Home Warranty
- Old Republic Home Protection
- Cinch Home Services
Costs typically run $300–$600/year for basic coverage.
Florida-Specific Warranty Concerns
Don't rely on a warranty for:
- Hurricane damage (excluded)
- Flood damage (requires separate flood insurance)
- Items damaged by "acts of God" (usually not covered)
Always pair a home warranty with home insurance AND flood insurance if you're in a flood zone.
HALOFIX vs. Warranty Claims
Speed:
- HALOFIX: Same-day or next-day service
- Warranty: 3–7 business days typical
Price transparency:
- HALOFIX: Upfront pricing, no surprises
- Warranty: Hidden fees, claim rejections
Choice of contractor:
- HALOFIX: You pick from licensed Heroes
- Warranty: Warranty company chooses for you
HALOFIX is best for:
- Emergencies (24/7 service)
- Transparency
- Peace of mind with vetted contractors
A home warranty is good insurance. But knowing your coverage prevents claims denials. Read your policy today.