Home Warranty and Home Insurance, what's the difference?

We are the New Jersey title insurance agent that does it all for you. For your next commercial real estate transaction, house purchase, mortgage refinance, reverse mortgage, or home equity loan, contact us, Vested Land Services LLC. We can help!

This post about the differences between a home warrant and homeowner's insurance is an oldie but a goody from Plymouth Rock Insurance and is worth setting out in full.  Just remember, neither are title insurance.  We can give you that!

What’s the Difference: Home Warranty Versus Home Insurance

August 9, 2016

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Last updated on July 19th, 2018 at 06:10 pm

If you own a home, you probably already have a homeowners insurance policy. If you’re shopping for a new home, you may have been approached about buying a home warranty or had one offered as part of your real estate deal. While both offer protection for your home, they’re not the same thing and it’s important to understand the differences between a home warranty versus home insurance.

What You Should Know

1. A home warranty generally helps to cover appliance or equipment breakdowns, whereas home insurance helps you repair your home from unexpected damage or situations, like fires and theft.

2. You might not have to purchase a separate home warranty. If you have home insurance through Plymouth Rock, you might be able to add optional coverages that are similar to home warranties, like equipment breakdown and utility line coverage. Plymouth Rock’s coverages can be cheaper than purchasing a separate home warranty.

If you want to know more about home insurance coverages, Plymouth Rock has handy resources for you to check out.

3. If you’re financing the purchase of your home, most lenders require homeowners insurance, but home warranties are typically optional.

Still, a home warranty could be a smart purchase depending on your own situation because it might help you control your budget for home repairs. And, when it comes to buying/selling real estate, a home warranty can offer benefits for both buyers and sellers.

Say, for example, there’s a home on the market that has a furnace and air conditioning system that’s up there in age. As a buyer having a home warranty might be a good way to guard against breakdowns or malfunctions. As a seller, offering a home warranty can help to assuage potential buyers who might be leery about buying a home with older HVAC systems. 

How Each One Works

When you buy a home warranty, you purchase a service agreement that pays for the repair or replacement of things inside of your home when they break down. Compare that to home insurance, which covers your home’s actual structure and your possessions. You should check your own home insurance policy to find out exactly what it covers.

Here’s an example to help you understand the difference: your insurance policy may help to replace your washing machine if it’s damaged by a fire, but a warranty may help replace it if it simply breaks down (however, it will depend on the terms of your service agreement).

If you do opt to purchase a home warranty, you can purchase different levels of protection. Basic warranties typically cover appliances, but you can even upgrade to cover things like a swimming pool. It’s also a standard practice for most warranties to include a modest deductible.

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 973-227-0645

E-mail sflatow@vested.com

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The Pros and Cons of Metal Roofing

We are the New Jersey title insurance agent that does it all for you. For your next commercial real estate transaction, house purchase, mortgage refinance, reverse mortgage, or home equity loan, contact us, Vested Land Services LLC. We can help.

Jennifer Geddes writing at Realtor.com lists the good and the bad about metal roofing materials.

Metal Roofing - Gary Alvis/Stock

If the time has come to get a new roof for your home, you might like to consider the option of metal roofing. This important improvement project is something most long-time homeowners will eventually have to undertake, and choosing the proper roofing material should not be taken lightly. A functioning roof will protect your home from harsh outdoor elements like rain and snow and ensure its structural integrity.

 Asphalt shingles are common, but the one type of covering that is catching the eye of an increasing number of homeowners is metal roofing. "Metal roofing is gaining in popularity," reports Todd Miller, president of Isaiah Industries in Piqua, OH. It had a 14% market share in 2016, up from 11% the year before, according to FW Dodge. Only asphalt shingles outpace metal in the remodeling market.
 In terms of style and utility, metal roofing gives any other material a run for its money, but does it suit your home (and budget)? Take a look at the best and worst things about metal roofing before you commit to it.

Continue to the full story.

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 973-227-0645

E-mail sflatow@vested.com

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Thinking of having an multigenerational home? You need to consider the pros and cons.

We are the New Jersey title insurance agent that does it all for you. For your next commercial real estate transaction, house purchase, mortgage refinance, reverse mortgage, or home equity loan, contact us, Vested Land Services LLC. We can help.

From The New York Times: Before You Move in With Family: A Checklist

Multigenerational housing can make sense in many ways: Older parents can be near their adult children in the event of health issues or emergencies, and when there are young grandchildren, having another set of adults around can make child-rearing easier. But there are a number of things that should be sorted out before deciding to share a home.  

Jessica, left, and Keith Peterson share
a two-family home with Jessica's mother, Beth Lyons,
in Monroe, Conn.Credit
Jane Beiles for The New York Times

Deal-breakers: Have everyone list their must-have items and create a list that you can stick to during house hunting. Jessica Peterson was glad that she and her parents got everything they wanted in their multifamily home in Connecticut. “The last thing I wanted was to push my parents into a place where they were going to be constantly complaining about how they didn’t want to live here,” she said.
Finances: Consider who will pay for what, and how everything will get paid. If aging parents still work, how will they deal with expenses after retirement? In addition to the home purchase, don’t forget to factor in other costs, including property taxes, renovations, monthly expenses like utilities, cable and internet service, and exterior tasks like gardening and landscaping.

 Maintenance: Who will manage the maintenance of the house — not just landscaping, but things like snow removal and gutter cleaning? 

Caregiving: What role will grandparents play in the lives of their grandchildren? Will they be regular babysitters?  And if an aging parent requires care, how much responsibility will fall on the adult child living in the house? Are there other adult children who need to be consulted?

Exit strategy: If a family member moves out (or on), what can will be done with the unused space? Who will receive what portion of the sale?  

Other family members: What will happen to the other spouse’s aging parents if they need care? If adult children have siblings who do not share ownership of the house, how will their inheritance be settled?

Sound scary?  Isn't family living always scary?  But, hey, there's always the built-in babysitter!

Read the column at NYTIMES.COM

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 973-227-0645

E-mail sflatow@vested.com

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What makes up a credit score?

We are the New Jersey title insurance agent that does it all for you. For your next commercial real estate transaction, house purchase, mortgage refinance, reverse mortgage, or home equity loan, contact us, Vested Land Services LLC. We can help.

The Inside Workings of Credit Scores

Consumers are encouraged to check their credit reports once per year. The primary reason for doing so is to make sure there aren't any mistakes. Unfortunately, credit reports are prone to contain mistakes. It's not really the fault of the three main credit repositories, Equifax, Experian and TransUnion because all three are just a database. Whatever is reported to them is what you see. Further, someone with a similar name can show up on someone else's report. If you're not the only Bob Smith in town, this is certainly possible.
 Someone else's poor credit might very well be showing up on your report which can directly damage your credit scores. When you find an error work with your loan officer to get it fixed. Your loan officer has working relationships with credit agencies and can help get mistakes fixed and provide a method to get your scores back to where they should be.

Continue to the full article where more of the mystery behind credit scores will be revealed.

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 973-227-0645

E-mail sflatow@vested.com

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Will a swimming pool add to your home's bottom line?

We are the New Jersey title insurance agent that does it all for you. For your next commercial real estate transaction, house purchase, mortgage refinance, reverse mortgage, or home equity loan, contact us, Vested Land Services LLC. We can help.

Will Building A Pool Pay Off In Your ROI?

That's the question asked in Realty Times.

It's sweltering. Who can blame you if you're looking for ways to cool down?! But if that means you're thinking about building a pool, you'll want to consider the financial ramifications first.

And we're not just talking about the cost of building one, properly maintaining it, and adding it to your insurance, all of which is pricey. "The average cost in the U.S. to install, equip, and fill a 600-sq.-ft. concrete pool starts at $30,000," said Houselogic. "Add in details like safety fences (most states require them), waterfalls, lighting, landscaping, and perhaps a spa, and you're easily looking at totals approaching $100,000."

SFGate

 If value and return on investment are on your mind (and they definitely should be), crunching some numbers before you start digging out your yard is prudent - even if you think you're going to live in your home forever. Talking to your real estate agent, even if you have no plans of selling your home anytime soon (or ever), is also a good idea. While opinions differ - some REALTORS® will tell you that pools pay off, while others will tell you not to expect good ROI—having some knowledge of what to expect, especially in your market, will help you to make a more informed decision.

Our take is that you have to do what's best for you and your home.  

Go here to read the full article.

What do you think?

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 973-227-0645

E-mail sflatow@vested.com

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