Hey everyone! I hope you are all doing well as we enter August...with school beginning in some districts/states...I know you have a ton going on. Life has definitely tested us all this year. I hope you know that I am always wishing the best for each and every one of you. I have been very fortunate during all of this...as the housing market has maintained and even in some cases, exceeded expectations. I know that many of you have not been as fortunate and I hope prospects brighten up for all. Now, if you are in the market...you may have heard about home insurance and home warranties. When purchasing a new home, it’s important to do in-depth research on all facets of the homebuying process. One thing you’ll need to understand is how to best protect yourself and your investment if anything were to go wrong. Check out the information on home insurance versus home warranty below to educate yourself on your options.

Home Insurance

Homeowners insurance pays for any accidental damages and loss that are caused by fire, lightning strikes, windstorms, and hail, however, damage from earthquakes and floods is typically not covered. It also covers the replacement of personal property in case of theft or damage and liability if a person were to get injured in your home or on your property. According to American Home Shield, the average annual cost of a homeowner's insurance policy ranges between $300 and $1,000, and the bank usually asks you to obtain a policy before the mortgage is issued. Make sure to keep in mind that each type of coverage in the policy is subject to a limit and, in most cases, you will have to pay a deductible.

Home Warranty

A home warranty is designed to cover the cost of repairs and replacements of larger appliances and crucial systems in your home that may fail or break due to age and wear and tear. This includes but isn’t limited to HVAC, electrical, or plumbing components, kitchen appliances, and your washer and dryer. With a home warranty, you are required to pay premiums year-round, even if you do not use it, and it won’t cover damages if appliances were not maintained properly or if the damage is from a fire or other disaster.

If you have any questions regarding either of these topics, please let me know! Advice is always free. I wish you all a wonderful month of August. Let's all take care of each other in this season.

-Natalie