Compare Home Warranty Options in Ohio
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What Each Policy Actually Covers
Most homeowners assume that because both products protect their home, they overlap — but they don't. Home insurance and a home warranty address completely different risks.
Homeowners insurance is a traditional insurance policy that protects your home and belongings from sudden, unexpected events. Common covered perils include:
- Fire and smoke damage
- Wind and hailstorms
- Theft and vandalism
- Lightning strikes
- Burst pipes (the resulting water damage, not the pipe itself)
- Personal liability if someone is injured on your property
If a tornado rips through your roof or a kitchen fire destroys your cabinets, homeowners insurance is what pays. Most mortgage lenders require you to carry it as a condition of your loan.
A home warranty, on the other hand, is a service contract — not insurance — that covers the breakdown of major home systems and appliances due to normal wear and tear. Typical items covered include:
- HVAC systems (heating and air conditioning)
- Plumbing and electrical systems
- Water heater
- Refrigerator, dishwasher, oven, and washer/dryer
- Optional add-ons like pools, septic systems, and roof leaks
When your 10-year-old air conditioner dies in July because it's simply worn out, your homeowners insurance won't touch it — but a home warranty very likely will. Learn more about what a home warranty covers in our complete coverage guide.
How Much Does Each One Cost?
Home Insurance Costs in 2026
The national average cost of homeowners insurance is approximately $2,400–$2,580 per year (roughly $200–$215/month) for a policy with $300,000 in dwelling coverage. However, rates vary significantly based on:
- Location — coastal, hurricane, tornado, or wildfire-prone areas are much more expensive
- Home value and rebuild cost — higher-value homes carry higher premiums
- Deductible — choosing a higher deductible (e.g., $2,500) lowers your premium
- Claims history and credit score — insurers factor these into pricing
- Discounts — bundling home and auto, installing security systems, or having a new roof can reduce your rate
Home Warranty Costs in 2026
Home warranty plans are considerably more affordable than home insurance. Here's what to expect:
| Plan Type | Avg. Annual Cost | Avg. Monthly Cost |
|---|---|---|
| Appliances-only plan | ~$467/year | ~$41/month |
| Systems-only plan | ~$483/year | ~$46/month |
| Combo (systems + appliances) | ~$540/year | ~$60/month |
| Comprehensive with add-ons | $1,200–$1,400/year | $100–$127/month |
In addition to the annual or monthly premium, you'll pay a service call fee of roughly $65–$150 every time a technician is dispatched for a repair. This replaces the large deductible you'd pay with an insurance claim.
When comparing the home warranty vs saving money debate, the right answer depends on your home's age and your financial cushion.
What's Excluded — and Common Misconceptions
Understanding what isn't covered is just as important as knowing what is.
What Home Insurance Excludes
- Wear and tear — your worn-out roof, old plumbing, or aging HVAC system are not covered
- Mechanical breakdown of appliances — if your dishwasher motor burns out, that's not a covered peril
- Flood damage from rising water — requires a separate flood insurance policy
- Earthquake damage — also excluded and requires a separate rider or policy
- Neglect and poor maintenance — insurers can deny claims tied to deferred upkeep
What Home Warranties Exclude
- Damage from perils — fire, storms, or theft damage is insurance territory, not warranty territory
- Pre-existing conditions — failures that existed before the contract started are typically excluded
- Improper installation or code violations — if a system was installed incorrectly, the warranty may not apply
- Cosmetic damage — scratches, dents, and non-functional parts aren't covered
- Items exceeding coverage caps — most warranties set per-item repair limits (often $1,500–$5,000)
The Big Misconception: Many homeowners mistakenly believe a home warranty is a type of insurance. It is not. A home warranty is a service contract governed by contract law, not insurance regulations. This matters because consumer protections differ, and warranty companies are not held to the same solvency standards as insurance carriers.
Be sure to review home warranty exclusions carefully before signing any contract.
Do You Need Both? Who Should Carry Each Policy
Homeowners Insurance: Nearly Everyone Needs It
If you have a mortgage, homeowners insurance isn't optional — your lender requires it. But even if your home is paid off, going without it is a major financial risk. A single house fire or liability lawsuit could cost hundreds of thousands of dollars. Homeowners insurance is the financial safety net no homeowner should go without.
Home Warranty: Right for Some, Not All
A home warranty makes the most sense if:
- Your home is older — aging systems and appliances are more prone to failure
- You have limited emergency savings — a warranty converts unpredictable repair bills into a fixed monthly cost
- You recently bought a home and aren't familiar with the condition of its systems
- You prefer convenience — the warranty company finds and dispatches contractors for you
A warranty may be less valuable if you have newer systems still under manufacturer warranties, a robust emergency fund, or a newer home. Learn about home warranties when buying a house to understand when to get coverage at closing.
Where to Buy Each
Homeowners Insurance: Purchase directly from insurers like State Farm, Allstate, or Farmers, or use a comparison tool to get quotes from multiple carriers at once.
Home Warranties: Top-rated companies for 2026 include American Home Shield, First American Home Warranty, Cinch Home Services, Liberty Home Guard, and Old Republic Home Protection. You can purchase directly from their websites or compare plans side-by-side on review platforms like NerdWallet or ConsumerAffairs. Review a home warranty plans comparison to find the best fit for your budget.
Frequently Asked Questions
Is a home warranty the same as home insurance?
No — they are fundamentally different products. Home insurance is a regulated insurance policy that covers sudden and accidental damage from events like fire, storms, and theft. A home warranty is a service contract that covers the repair or replacement of appliances and systems due to normal wear and tear. They are governed by different laws and provide different types of protection.
Can a home warranty replace homeowners insurance?
Absolutely not. A home warranty cannot replace homeowners insurance, and most mortgage lenders legally require you to maintain a homeowners insurance policy. A warranty only covers mechanical failures of specific systems and appliances — it does not cover structural damage, theft, liability, or losses from fire or natural disasters.
How much does a home warranty cost per month in 2026?
Most home warranty plans cost between $30 and $90 per month in 2026, depending on the coverage level. A basic appliances-only or systems-only plan averages around $41–$46/month, while a comprehensive combination plan runs closer to $60/month. Premium plans with multiple add-ons can exceed $100/month.
Will home insurance pay to replace my HVAC system?
Standard homeowners insurance will not pay to replace your HVAC system if it fails from age or normal wear and tear. However, if your HVAC is damaged by a covered peril — such as a fire or lightning strike — your policy may cover the resulting damage. For wear-and-tear breakdowns, a home warranty for older homes is typically the right solution.
Should I get both a home warranty and homeowners insurance?
For most homeowners, yes — especially those with older homes or aging systems. The two products complement each other perfectly: insurance protects against catastrophic, unexpected events while a warranty handles the everyday mechanical failures that insurance specifically excludes. Together, they provide comprehensive financial protection for your home from virtually every angle.