Home warranty vs. homeowners insurance: what each one covers
They sound similar but protect against very different things. Here’s how to tell them apart — and why many homeowners carry both.
DriveGuard Home Warranty · November 3, 2026 · 5 min read
Homeowners insurance and a home warranty both protect your home, but they respond to very different events.
Homeowners insurance covers sudden damage
Insurance is designed for the unexpected and the catastrophic: a fire in the kitchen, a tree through the roof, a burst pipe that floods the basement. It typically covers the structure, your belongings and your liability, after a deductible.
A home warranty covers everyday breakdowns
A home warranty is a service contract. It covers the repair or replacement of systems and appliances that fail from normal wear and tear — the furnace that won’t ignite, the dishwasher that stops draining, the water heater that finally gives out.
Why many homeowners have both
Insurance won’t pay to replace a 14-year-old air conditioner that simply wore out. A home warranty won’t pay for storm damage. Together, they cover far more of the surprises that come with owning a home.
The bottom line
If a repair would strain your budget, a home warranty turns that risk into a predictable monthly cost and a flat service fee.
Protect your home from surprise repair bills
DriveGuard plans cover systems and appliances for one flat service fee.
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