For many, one of the biggest decisions and investments you’ll make during the course of your lifetime is purchasing an Atlanta new home. With such a significant purchase, it’s only natural that you will have plenty of questions. One of the most common questions that real estate professionals are asked is, “What is the difference between my home insurance policy and a home warranty?”

Home insurance policies vary by provider, but generally speaking, a home insurance policy covers damage caused by identified risks that are accidental or sudden, such as a natural disaster or fire. The damage may occur to major components of the home or property inside the home.

On the other hand, a home warranty is generally an option that fills in the gaps between insurance policies. Warranties are separate from your homeowner’s insurance, and for a pre-owned home, they will cover repairs to major appliances and systems in your home that break down or malfunction due to normal use. They also give homeowners easy access to trusted contractors for repairs.

According to a Consumer Expenditure Survey from the 2002 U.S. Census, homeowners spend an average of $900 each year to repair or replace their home’s appliances and systems. Additionally, the average life expectancy of the top nine critical appliances and systems within your home is 13 years, and the likelihood of failure of one of these systems in a year is 68 percent (Home Repair and Remodel, Marshall & Swift L.P., 2004). Repairing a home system or appliance can range in cost from $65 to $2,000, and the average cost of replacing them is $1,085 (Home Repair and Remodel, Marshall & Swift L.P., 2004).

For more information on home warranties, visit www.2-10.com.