Colorado · Warranty versus insurance
A home warranty pays for wear. Homeowners insurance pays for a sudden peril.
A Colorado home warranty is a service contract. It may repair or replace a listed appliance or system that fails from normal use, subject to a service fee and a list of exclusions. A homeowners policy pays for sudden covered perils: fire, wind, hail, and, when the form says so, a sudden burst. It does not pay because a water heater got old. This page does not rank warranty companies and it does not invent a percent off.
Equipment-breakdown coverage, if you add it, is an insurance endorsement for mechanical or electrical failure. It is still not the warranty, and it is not on the policy unless it is listed. The Colorado policy: Colorado homeowners. The same split in Texas: Texas home warranties and insurance. A water heater, specifically: water heaters. Fire from outside: Colorado wildfire. The endorsement: equipment breakdown. What people leave off the house policy: common gaps.
