Home Repair Insurance
Find out more about the coverage you need to reimburse yourself for necessary home repairs.
Written by
Christine Lacagnina has written thousands of insurance-based articles for TrustedChoice.com by authoring consumable, understandable content.
Reviewed by
Jeff Green has held a variety of sales and management roles at life insurance companies, Wall street firms, and distribution organizations over his 40-year career. He was previously Finra 7,24,66 registered and held life insurance licenses in multiple states. He is a graduate of Stony Brook University.
As many homeowners can attest, homes require consistent maintenance. The cost of home repairs, renovations, and improvements can add up quickly, and having coverage can be seriously helpful for avoiding these hefty costs.
Fortunately, an independent insurance agent can help you get set up with all the home repair insurance you need. They'll make sure you get matched to the right kind of coverage at the right price. But for starters, here's a breakdown of home repair insurance and why you might need it.
What Is Home Repair Insurance?
Under certain circumstances, your regular homeowners insurance policy will provide coverage for necessary home repairs, but this isn't always the case. For repairs and renovations that fall outside the scope of your homeowners insurance, you may be able to get additional coverage. If you're buying a new home with plans to renovate, contact an independent insurance agent who can help you find a policy that will cover your repairs and upgrades.
Home repair insurance can fall under these four categories:
- Home warranty insurance policies
- Home protection plans or home repair programs
- Utility line insurance
- Home repair contractors insurance
An independent insurance agent can help recommend the exact type of home repair insurance that works best for your needs.
The Average Lifespans of Major Home Appliances
When considering purchasing additional home repair coverage, it can be helpful to know just how long certain major home appliances are expected to last.
- Dishwashers and trash compactors usually last around 9-10 years.
- Gas stoves last about 15 years, while electric stoves last about 13 years.
- Refrigerators last about 13 years.
- Garbage disposals have an expected lifespan of 8-12 years.
- Washers usually last for about 10 years, while dryers last an average of 13 years.
Since your home's appliances won't last forever and can be expensive to replace after just a few years, having additional home repair insurance might be worth it to you and your family.
What Home Repairs Will My Homeowners Policy Cover?
There are many cases where your homeowners insurance will cover necessary repairs to your home. If your roof or gutters get damaged due to severe weather or a tree falls onto your home and damages windows and walls, your home insurance will probably cover the repair costs.
However, if you simply want to replace your roof or windows due to wear and tear, your home insurance would not cover this. Similarly, if an indoor water pipe bursts and causes water damage, your home insurance is likely to cover the repairs, but if your basement gets flooded due to excessive rainfall, you will need to have a separate flood insurance policy to handle the repairs.
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What Is a Home Warranty Insurance Policy?
You can buy home warranty insurance when you buy a home. It's typically part of the sales contract and is often paid for by the seller or even the real estate company for the first year.
This insurance is designed to protect the buyer from defects in the home. Coverage typically lasts for the first year of home ownership and can often be renewed. Most home warranty plans include coverage for:
- Kitchen appliances, including the stove, refrigerator, dishwasher, microwave and garbage disposal
- Wiring systems, including electrical, telephone and cable
- Plumbing, including indoor pipes, drains, faucets, sprinkler systems, pools and hot tubs
- Heating and cooling appliances, including the furnace, air conditioner, heat pump and hot water heater
- Other items such as ceiling fans, doorbells and garage door openers
Some home warranties require that you purchase additional coverage to include some items that are not otherwise covered, so be sure to read the terms of your home warranty carefully. If any of the covered items break, you can call the insurance company, and they will send someone to your house to attempt a repair. If the unit is irreparable, the company will cover replacement and installation costs.
Keep in mind that home warranties will not provide coverage for structural damage in the home, such as problems with the foundation, cracks in the walls, or a leaky roof. Be sure to have a thorough home inspection done before finalizing the purchase of your home to be aware of any serious problems you might be responsible for.
What Are Home Protection Plans and Home Repair Programs?
Home insurance companies usually offer these programs to assist policyholders with the costs of repairing or replacing home appliances or components that are not covered by a homeowners policy. They're similar to home warranty insurance plans and can be purchased at any time. Costs for this coverage often depend on the current age of your home and appliances.
What Is Utility Insurance?
Many utility providers offer their customers the option to purchase insurance to cover utility lines. This may include power lines to your house as well as gas, water, and sewage pipes that are on your property but outside your home. It sometimes even includes plumbing issues in your home.
If an underground utility line gets damaged and your yard or driveway has to be dug up for repairs, the cost can easily run into the thousands and wouldn't be covered by your home insurance policy. For this reason, utility companies will allow you to pay an additional amount on your utility bill, often a minimal amount, to provide coverage for such an instance. These costs vary by location and utility company.
What Is Contractors Insurance?
Contractors insurance is commercial liability coverage that should be carried by any contractor you hire to work on your house. If a contractor is installing new shelves and accidentally drills into a pipe, causing water damage, the contractor's insurance policy should provide coverage for the repair and all damage caused by the mishap.
Additionally, contractors insurance may include workers' compensation, so if any of the contractor’s employees get injured while working in your home, you won't need to worry about being held liable.
Always be certain that any contractors you hire to do work in your home carry liability insurance. You can do this by requesting the name and phone number of the contractor's insurance agent before they sign a contract to do work for you. You can also call their insurance company and request a certificate of insurance.
Home Warranty Insurance vs. Home Repair Insurance
Home warranty insurance and home repair insurance might seem similar, but there are some differences. Home warranty insurance is meant to cover repairs and replacements of a home's major appliances and systems (e.g., electrical or sewage) for a specified term, such as up to one year from the date of purchase.
On the other hand, home repair insurance is a contract with an insurance company that agrees to pay for incidents caused by certain covered perils that could damage parts of your home. So, while home warranty insurance can replace appliances that malfunction due to poor manufacturing or general wear and tear, home repair insurance could pay to replace your washer and dryer if a lightning strike destroyed them.
Can Home Repairs and Improvements Save Money?
Repairs, improvements, and renovations to your home may cost a lot in the short term, but the long-term benefits can often outweigh these costs. In addition to making your home more livable, some updates may save you money on your monthly bills.
Replacing older appliances with newer, energy-efficient models can lower your utility costs, and some home repairs may even earn you a discount on your home insurance policy. Updates such as installing a burglar alarm or home sprinkler system, new doors and windows with secure locks, or even a new roof may lead to you scoring new home insurance discounts. Be sure to speak with your independent insurance agent before taking on any home renovations to ensure you don't need to update your coverage first, and also to be aware of whether you qualify for any discounts after completing the project.
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Our independent agents shop around to find you the best coverage.
How Can I Determine If Home Repair Insurance Is Right for Me?
When deciding whether to purchase home repair insurance, you must weigh the pros and cons and try to determine whether the costs make sense based on the benefits and the peace of mind you will have.
If you require advice or assistance determining what coverage you may need, you can speak with an independent insurance agent, attorney, or financial planner for more valuable advice.
The Benefits of Working with an Independent Insurance Agent
Independent insurance agents have access to multiple insurance companies, ultimately finding you the best coverage, accessibility, and competitive pricing while working for you. They'll help you find the best home repair insurance that offers the right blend of coverage and cost.
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