Homeowners often confuse between a warranty and insurance plan for home appliances and systems. These two are definitely distinct in many ways such as terms and conditions, and coverage costs. Warranty just offers cost protection on the repair and replacement cost of home appliances, including electrical and plumbing fixes. However, there is a wide range of eligibility criteria that have to be met in order to make a claim under warranty. On the contrary, a home insurance ensures the protection of all appliances and systems of your home, as well as other valuable, in case of major damages due to either man-made or natural disasters. These insurance covers also cover liability protection against any third-party legal suits. While warranty has a certain amount of benefits, the more comprehensive benefits of a home insurance policy ensure: Protection of both the contents and the structure of the house Protection of furniture (indoor and outdoor) and clothes Protection of home electronic appliances such as TV, refrigerator, computer, theatre system, etc Full or limited protection cover for jewelry (depending on eligibility criteria) Compensatory accommodation and livelihood payments in case of complete destruction of the home Claims in case of theft, vandalism, lightning, windstorm, fire, hail, etc.