What is the difference between a home warranty and home insurance?

A home warranty is a service contract covering repair or replacement of home systems and appliances, while home insurance protects your home's structure and belongings against damage from perils like fire, theft, or storms.

Which is better, a home warranty or home insurance?

Neither is better because they serve different purposes, so you typically need both home insurance to cover catastrophic damage and a home warranty to cover everyday system and appliance breakdowns.

How much does a home warranty cost compared to home insurance?

A home warranty typically costs between $300 and $600 per year plus service call fees, while home insurance averages around $1,200 to $2,500 annually depending on location and coverage limits.

Can a home warranty replace home insurance?

No, a home warranty cannot replace home insurance because it covers wear-and-tear breakdowns of appliances and systems, not structural damage or liability from events like fires, floods, or lawsuits.

Is a home warranty worth it for a new home?

A home warranty is often less valuable for a new home because builder warranties and manufacturer warranties already cover new appliances and systems, so paying extra for duplicate coverage is usually unnecessary.

Does home insurance cover appliance breakdowns like a home warranty does? No, standard home insurance does not cover appliance breakdowns from normal wear and tear, which is exactly what a home warranty covers, so you need a separate warranty for those repair costs. What is the most common beginner mistake when choosing between a home warranty and home insurance?

The most common beginner mistake is assuming home insurance covers mechanical failures, so homeowners skip a home warranty and then pay hundreds out of pocket when an HVAC system or water heater fails.

Can I switch from a home warranty to home insurance or vice versa?

You can switch providers within each category, but you cannot switch between a home warranty and home insurance because they cover different risks, so you must maintain both policies separately.

Is a home warranty compatible with any home insurance policy?

Yes, a home warranty is compatible with any home insurance policy because the two are independent contracts, and having both simply means you have coverage for both breakdowns and catastrophic damage.

When should I use a home warranty instead of filing a home insurance claim?

Use a home warranty when a covered appliance or system fails from age or normal use, but file a home insurance claim when your home or belongings suffer damage from a sudden event like a fire, burst pipe, or theft.

Difference Between

Difference Between Home Warranty and Home Insurance

Written byNex Virox Team

Editorial Team

Reviewed byVarshal Nirbhavane

Senior SEO & Organic Growth Professional · 5+ years

Published: September 1, 202619 min read

Quick answer

The main difference between Home Warranty and Home Insurance is that a home warranty covers repair or replacement of appliances and systems from wear and tear, while home insurance covers damage from sudden, unexpected events like fire or theft. Home Warranty is a service contract for breakdowns, while Home Insurance is a property policy for disasters.

Key takeaways

Core distinction: Home warranty covers appliance and system breakdowns from wear, while home insurance covers damage from disasters.
How each works: Home warranty pays service call and repair costs, whereas home insurance pays claims after a covered peril occurs.
Cost and effort: Home warranty costs roughly $300-$600 annually with service fees, while home insurance averages $1,000-$2,000 per year.
Best-fit use case: Home warranty suits older homes with aging systems, while home insurance is mandatory for mortgage protection.
Most common mistake: Buyers assume home insurance covers broken appliances, but it excludes wear and tear that warranties address.

Table of Contents18 sections

Difference Between Home Warranty and Home Insurance: Comparison Table

Aspect	Home Warranty	Home Insurance
Definition	A service contract covering repair or replacement of home systems and appliances.	A property and casualty policy covering damage to the home and personal belongings.
Purpose	Protects against breakdowns from normal wear and tear of covered items.	Protects against sudden, accidental losses like fire, theft, or windstorms.
Core Mechanism	Pays for repair or replacement when a covered appliance or system fails.	Indemnifies the homeowner for covered perils after a deductible is met.
Legal Status	Regulated as a service contract, not an insurance product in most states.	Regulated by state insurance departments as a licensed insurance product.
Mandatory Requirement	Optional unless a home seller or real estate deal requires it.	Required by mortgage lenders for the loan term in most cases.
Coverage Trigger	Activated by mechanical failure or breakdown due to age or wear.	Activated by a named peril such as fire, hail, or vandalism.
Typical Cost	Annual premium ranges from roughly $300 to $600 per year.	Annual premium averages around $1,200 to $2,500 depending on location.
Service Fee	Charges a flat trade service fee per claim visit, often $75 to $125.	Charges a deductible per claim, typically $500 to $2,500.
Coverage Limit	Per-item caps apply, often $1,500 to $3,000 for major appliances.	Dwelling coverage limit usually equals the home's replacement cost.
Claim Payout	Provides repair service directly rather than a cash payout to the owner.	Issues a cash settlement minus the deductible after damage assessment.
Claim Speed	Service technician typically dispatched within 24 to 48 hours.	Adjuster inspection and payout can take several weeks for large losses.
Claims Approval	Claims denied if the failure results from improper installation or pre-existing issues.	Claims denied for excluded perils like floods or earthquakes unless added.
Coverage Duration	Contract term usually lasts one year and requires renewal.	Policy term is typically one year, renewable annually.
Durability Coverage	Replaces failed parts with new components of similar capacity and quality.	Reimburses for repair or replacement of damaged property to pre-loss condition.
Scalability	Coverage limits fixed per item regardless of the home's total value.	Coverage limits scale with the home's rebuild cost and contents value.
Maintenance Requirement	Denies claims if the owner failed to perform routine upkeep on the system.	Does not cover damage resulting from long-term neglect or lack of maintenance.
Safety Hazards	Covers electrical and plumbing failures that pose fire or water damage risks.	Covers damage from the hazard event itself, such as a fire or burst pipe.
Compatibility	Works with any licensed contractor from the warranty company's network.	Allows the homeowner to choose any licensed contractor for repairs.
Availability	Available to homeowners, homebuyers, and sometimes renters.	Available to homeowners, landlords, and renters through separate policies.
Pre-Existing Conditions	Excludes coverage for defects that existed before the contract start date.	Excludes damage that occurred before the policy's effective date.
Examples Covered	Covers a failed water heater, refrigerator compressor, or garage door opener.	Covers roof damage from hail, fire destruction, or burglary losses.
Examples Excluded	Excludes structural damage, foundation cracks, and outdoor landscaping.	Excludes appliance breakdown, sewer line backup, and termite damage.
Typical Users	Used by homeowners with older systems or buyers of pre-owned homes.	Used by all homeowners with a mortgage and most property owners.
Underwriting Basis	No inspection required; coverage approved based on the contract terms only.	Requires underwriting review of home condition, location, and claims history.
Renewal Condition	Renewable regardless of claims filed, but premiums may rise slightly.	Renewable but subject to non-renewal after severe claims or high-risk changes.
Depreciation Factor	Replaces failed items without deducting for age or prior wear.	Actual cash value policies deduct depreciation; replacement cost policies do not.
Coverage Gap	Leaves structural damage and liability completely uncovered by the contract.	Leaves system breakdowns and appliance failures completely uncovered by the policy.
Regulatory Oversight	Oversight varies by state; some states require service contract registration.	Subject to strict state insurance regulations and consumer protection laws.
Best Fit Scenario	Fits homeowners wanting predictable out-of-pocket costs for appliance failures.	Fits homeowners needing financial protection against catastrophic property losses.
Combined Strategy	Pairs with insurance to cover the gap left by structural exclusions.	Pairs with warranty to cover the gap left by mechanical breakdown exclusions.

What Is Home Warranty?

Home warranty is a service contract that covers repair or replacement costs for major home systems and appliances when they fail from normal wear and tear. It exists to protect homeowners from sudden, expensive breakdowns that standard insurance policies do not cover.

Definition of Home Warranty

A home warranty is a renewable, fixed-term service agreement between a homeowner and a warranty provider. Under this contract, the provider agrees to repair or replace specified systems and appliances, such as HVAC units or water heaters, after mechanical failure due to age or routine use.

Key Characteristics of Home Warranty

Characteristic	What It Means in Practice
Service contract	It is a renewable agreement for repairs, not a property damage policy.
Wear and tear	Covers gradual breakdowns from age, not sudden accidents or disasters.
Fixed premium	You pay a set annual or monthly fee regardless of claim frequency.
Service call fee	Each repair visit requires a flat trade-call fee, typically paid upfront.
Coverage limits	Each item has a maximum payout cap per contract term.
Pre-existing conditions	Items with known defects before the contract start are usually excluded.
Contractor network	Repairs are performed by vetted technicians assigned by the provider.
No indemnity	It pays for repair services, not the cash value of the broken item.
Optional add-ons	Extras like pools or roof leaks require separate, higher-cost riders.
Term length	Contracts run 12 months and require renewal to maintain coverage.

Common Examples of Home Warranty

American Home Shield – a leading national provider offering broad plans for systems and appliances.
Choice Home Warranty – known for its low service fees and optional add-on coverage.
Liberty Home Guard – offers three plan tiers plus a la carte item add-ons.
Cinch Home Services – differentiates itself with no age limits on covered appliances.
Select Home Warranty – provides budget-friendly pricing with a simple two-plan structure.
Old Republic Home Protection – a long-established insurer-backed warranty provider in California.
First American Home Warranty – offers a 30-day workmanship guarantee on all repairs.
2-10 Home Buyers Warranty – widely bundled with newly constructed homes by builders.
AFI Home Warranty – a smaller regional option with flexible monthly payment plans.
HomeServe – focuses on single-system coverage like water, sewer, or electrical lines.

Advantages and Limitations of Home Warranty

Advantages	Limitations
Predictable repair costs via one flat service fee per visit.	Service fees apply per claim, so multiple failures mean multiple charges.
Covers expensive systems like HVAC that cost thousands to replace.	Dollar caps often fall far below actual replacement costs for major units.
Reduces the hassle of vetting and hiring your own contractor.	You cannot choose your technician; the provider assigns one to you.
Useful for sellers offering buyers extra purchase protection.	Claims for worn but functional parts are routinely denied as maintenance.
Simple to understand with clear lists of covered components.	Fine print excludes many failures, including improper installation or code violations.
No deductible or coinsurance, unlike many property insurance policies.	Pre-existing conditions and prior neglect void coverage on affected items.
Provides budget certainty for older homes with aging appliances.	Providers may delay repairs or use low-cost replacement parts to save money.
Renewable annually with flexible payment plans.	Premiums rise sharply at renewal, often outpacing the value of claims made.
Add-on riders allow customisation for pools or well pumps.	Optional riders can double the total premium for rarely used coverage.
Fast claim filing via phone or online portals.	Average wait times for a technician visit can stretch several business days.

What Is Home Insurance?

Home Insurance is a property and liability policy that pays to repair or rebuild your house after covered damage from fire, storms, theft, or vandalism. It exists to protect your financial investment in the dwelling and your personal belongings, and to shield you from lawsuits if someone is injured on your property.

Definition of Home Insurance

Home Insurance is a legally binding contract between a homeowner and an insurer where the insurer agrees to indemnify the policyholder for specified perils, such as fire, wind, hail, theft, and personal liability, in exchange for a periodic premium. Coverage is typically subject to a deductible, policy limits, and named exclusions listed in the policy document.

Key Characteristics of Home Insurance

Characteristic	What It Means in Practice
Peril-based coverage	Pays only for losses caused by events explicitly listed, such as fire, lightning, or wind.
Deductible applies	You pay the first fixed amount, often $1,000 or more, before the insurer pays a claim.
Actual cash value	Reimburses you for an item's depreciated worth, not what you originally paid for it.
Liability protection	Covers legal fees and settlements if someone sues you for an injury on your property.
Mortgage requirement	Lenders almost always mandate a policy as a condition for approving a home loan.
Annual premium	Paid once a year or in monthly installments, with costs based on risk and rebuild value.
Named exclusions	Flood, earthquake, and sewer backup are typically not covered without separate riders.
Policy limits	Each coverage category has a maximum payout, such as a 50% cap on personal property.
Replacement cost option	An endorsement that pays to replace damaged items at today's prices, not depreciated value.
Claims-based pricing	Filing one or two claims can raise your future premiums or lead to non-renewal.

Common Examples of Home Insurance

HO-3 Special Form – the most common policy; covers the home for all perils except those explicitly excluded.
HO-5 Comprehensive Form – offers open-peril coverage on both the dwelling and personal belongings with fewer exclusions.
HO-6 Condo Insurance – covers a condominium owner's interior walls, fixtures, personal property, and liability.
HO-4 Renters Insurance – protects a tenant's personal belongings and provides liability without covering the building structure.
HO-7 Mobile Home Insurance – tailored for manufactured or mobile homes, including transport and setup damage.
HO-8 Older Home Policy – designed for historic or older homes where replacement cost exceeds market value.
Landlord Insurance – covers a rental property's structure, lost rental income, and landlord liability.
Vacation Home Insurance – provides coverage for a secondary residence, often with higher premiums due to vacancy risk.
Flood Insurance – a separate federal policy through the NFIP that covers water damage from rising surface water.
Earthquake Insurance – a standalone endorsement that pays for structural damage from seismic activity.

Advantages and Limitations of Home Insurance

Advantages	Limitations
Rebuilds your entire home after a catastrophic fire or total storm loss, preventing financial ruin.	Flood and earthquake damage are never covered in a standard policy, forcing separate costly purchases.
Replaces stolen or destroyed personal belongings, including furniture, electronics, and clothing.	High-value items like jewelry and art have sub-limits, often capped at $1,500, unless separately scheduled.
Covers legal defense and settlements if a guest is injured on your property, even if you are sued.	Mold, pest infestations, and general wear and tear are excluded, leaving you to pay for those repairs.
Pays for temporary hotel stays and meals if your home becomes uninhabitable after a covered loss.	Policy limits are based on rebuild cost, not market value, so you may not recover your home's sale price.
Provides coverage for medical payments to injured visitors regardless of fault, avoiding lawsuits.	Filing a claim for minor damage often raises your premium by 20% or more for three to five years.
Protects against liability from your dog biting a neighbor or a child falling on your steps.	Certain dog breeds and trampolines are excluded or require additional liability riders.
Offers replacement cost endorsements that pay full current prices for destroyed items.	Depreciation is applied on actual cash value policies, so you receive far less than replacement cost.
Required by mortgage lenders, making home ownership financing possible in the first place.	If you let the policy lapse, the lender can force-place an expensive policy and bill you for it.
Covers damage from sudden, accidental water discharge from plumbing, heating, or appliances.	Gradual leaks, sump pump failures, and sewer backups are excluded without specific endorsements.
Includes coverage for detached structures like garages, sheds, and fences on your property.	Detached structure coverage is usually capped at 10% of the dwelling limit, which may be insufficient.

Similarities Between Home Warranty and Home Insurance

Shared Aspect	How Home Warranty and Home Insurance Are Alike
Financial Protection	Home warranty and home insurance both shield homeowners from unexpected, high-cost financial burdens.
Contractual Agreements	Home warranty and home insurance are both legally binding contracts between the homeowner and a provider.
Monthly Premiums	Home warranty and home insurance both require regular monthly or annual premium payments for coverage.
Service Fees	Home warranty and home insurance both involve a deductible or service fee per claim filed.
Policy Limits	Home warranty and home insurance both cap the maximum payout amount for specific covered incidents.
Coverage Exclusions	Home warranty and home insurance both list specific events and items that are not covered.
Claims Process	Home warranty and home insurance both require filing a formal claim before receiving any service.
Provider Approval	Home warranty and home insurance both require the provider to approve the claim before work begins.
Homeowner Requirement	Home warranty and home insurance both are typically purchased by the person who owns the property.
Property Attachment	Home warranty and home insurance both tie coverage to the specific physical property address.
Annual Renewal	Home warranty and home insurance both require an annual renewal decision to continue coverage.
Risk Transfer	Home warranty and home insurance both transfer specific financial risks away from the homeowner.
Peace of Mind	Home warranty and home insurance both provide homeowners with greater peace of mind regarding costs.
Lender Requirement	Home warranty and home insurance both can be required by mortgage lenders for loan approval.
Real Estate Transactions	Home warranty and home insurance both are often negotiated during a home purchase sale.
Seller Contributions	Home warranty and home insurance both may be paid for by the home seller as an incentive.
Coverage Documentation	Home warranty and home insurance both provide a detailed written policy document outlining terms.
Claim Documentation	Home warranty and home insurance both require receipts, photos, or evidence for claim validation.
Customer Support	Home warranty and home insurance both offer customer service departments to handle policyholder questions.
Online Management	Home warranty and home insurance both offer online portals for managing policies and filing claims.
Rate Variation	Home warranty and home insurance both have premiums that vary by provider and coverage level.
Coverage Tiers	Home warranty and home insurance both offer multiple tiers of coverage at different price points.
Pre-existing Conditions	Home warranty and home insurance both often exclude damage or failures existing before policy start.
Preventive Maintenance	Home warranty and home insurance both may deny claims if neglect or lack of maintenance caused the issue.
Third-Party Contractors	Home warranty and home insurance both dispatch third-party vendors or contractors to handle repairs.
Dispute Resolution	Home warranty and home insurance both include an appeals process or arbitration for denied claims.
Non-Transferable Options	Home warranty and home insurance both can be transferred to a new owner when the home is sold.
State Regulations	Home warranty and home insurance both are subject to state-level insurance regulations and oversight.
Annual Cost	Home warranty and home insurance both represent a predictable, budgeted annual expense for homeowners.
Claim Frequency Limits	Home warranty and home insurance both may limit the number of claims allowed per policy term.

Home Warranty or Home Insurance: Which Should You Choose?

The single deciding variable is what is broken. Home insurance covers sudden, accidental damage from events like fires or storms. A home warranty covers repair or replacement of aging systems and appliances that fail from normal wear and tear.

When to Use Home Warranty

Choose Home Warranty when your major appliances or home systems are older than 7 years and you lack cash reserves for a sudden $1,500 replacement. It also fits first-time buyers with no emergency fund or sellers offering coverage as a closing incentive.

When to Use Home Insurance

Choose Home Insurance when you need financial protection against catastrophic, unexpected events like fire, theft, or wind damage. It is mandatory with a mortgage and essential for anyone who cannot self-insure against a total loss of their dwelling and belongings.

Common Misconceptions About Home Warranty and Home Insurance

Common Myth	The Reality
Home insurance and a home warranty are the same product.	Home insurance covers sudden damage from perils like fire or storms, while a home warranty covers repair or replacement of broken home systems and appliances.
A home warranty covers structural damage to your house.	A home warranty covers mechanical failure of systems like HVAC and appliances, not the structure itself; home insurance covers structural damage from covered perils.
Home insurance pays to fix your old, broken air conditioner.	Home insurance excludes wear and tear, so a failing AC unit is covered by a home warranty, not by home insurance.
A home warranty is mandatory when you buy a house.	No law requires a home warranty; it is an optional service contract, whereas home insurance is typically required by your mortgage lender.
Home insurance covers all appliance breakdowns automatically.	Home insurance excludes mechanical failure from normal use; a home warranty explicitly covers appliance breakdowns from age or wear.
A home warranty covers pre-existing conditions of systems.	Most home warranty plans exclude pre-existing damage or known defects, while home insurance covers sudden, accidental damage that is not pre-existing.
Home insurance will replace your roof if it simply wears out.	Home insurance only covers roof damage from a sudden peril like hail or wind, not gradual deterioration, which a home warranty does not cover either.
A home warranty is an insurance policy regulated like home insurance.	A home warranty is a service contract regulated by state consumer laws, whereas home insurance is a regulated insurance product with statutory requirements.
Home insurance covers plumbing leaks from old, corroded pipes.	Home insurance covers sudden water damage from a burst pipe but excludes repairing the corroded pipe itself, which a home warranty may cover.
You can file an insurance claim for any home repair.	Home insurance only covers damage from named perils, not general maintenance repairs; a home warranty handles system and appliance breakdowns.
A home warranty covers your roof leaks from storm damage.	A home warranty does not cover roof leaks; home insurance covers storm-related roof damage, but not leaks from normal aging.
Home insurance premiums pay for appliance repair technicians.	Home insurance premiums fund claims for property damage, not appliance service calls; a home warranty premium covers the cost of repair visits.
A home warranty protects you from liability if someone is injured.	Home insurance includes liability coverage for injuries on your property, while a home warranty only covers system and appliance repair, not liability.
Home insurance covers your water heater if it stops heating.	Home insurance excludes wear and tear, so a water heater that fails from age is covered by a home warranty, not by home insurance.
You need both a home warranty and home insurance for mortgage approval.	Lenders require home insurance for mortgage approval, but a home warranty is optional and never a lending requirement.
A home warranty pays for damage caused by a covered appliance failure.	A home warranty repairs or replaces the failed appliance but typically excludes resulting property damage, which home insurance may cover.
Home insurance has a service fee for every repair call.	Home insurance uses a deductible per claim, not a flat service fee; a home warranty charges a fixed trade call fee for each repair visit.
A home warranty covers your detached garage and fence.	A home warranty covers only listed systems and appliances inside the home, while home insurance covers detached structures like garages and fences.
Home insurance covers theft of your refrigerator.	Home insurance covers theft of personal property, but a refrigerator is usually a fixture, so a home warranty covers its mechanical breakdown instead.
You can buy a home warranty after a system fails.	Home warranty providers deny claims for pre-existing failures, whereas home insurance requires coverage before a sudden loss occurs.
A home warranty covers your swimming pool and spa equipment.	Some home warranty plans offer optional pool coverage, but standard plans exclude it; home insurance covers pool damage from perils like wind or fire.
Home insurance covers code upgrades during a repair.	Home insurance typically excludes building code upgrades unless you add an endorsement, and a home warranty does not cover code compliance at all.
A home warranty covers your sump pump failure from a power surge.	Home warranty plans often exclude sump pumps or electrical surges, while home insurance may cover water damage if the sump pump failure is sudden.
Home insurance covers termite damage to your wooden floors.	Home insurance excludes pest and insect damage entirely, and a home warranty does not cover termites either, so both products exclude this.
A home warranty covers your refrigerator ice maker.	Many home warranty plans exclude ice makers or limit coverage, whereas home insurance never covers appliance components like ice makers.
Home insurance covers your HVAC if it dies from old age.	Home insurance excludes wear and tear, so an aging HVAC system is covered by a home warranty, not by home insurance.
A home warranty covers damage from a fire caused by an appliance.	A home warranty covers the failed appliance only, while home insurance covers the fire damage to your home and belongings from that appliance.
Home insurance covers your garage door opener motor.	Home insurance does not cover mechanical failure of a garage door opener; a home warranty may cover it if the opener is listed in your contract.
A home warranty covers your roof replacement from a tornado.	A home warranty does not cover roof replacement; home insurance covers tornado damage to your roof, minus your deductible.
Home insurance and a home warranty both cover the same repair costs.	Home insurance covers sudden accidental damage from perils, while a home warranty covers breakdowns from normal wear; they rarely overlap on the same claim.

Conclusion

Difference Between Home Warranty and Home Insurance comes down to what breaks. Home insurance covers sudden damage from events like fires or storms. Home warranty covers worn-out systems and appliances. Pick insurance for disaster protection. Pick a warranty for repair-cost coverage on aging equipment.

FAQs on Difference Between Home Warranty and Home Insurance

What is the difference between a home warranty and home insurance?: A home warranty is a service contract covering repair or replacement of home systems and appliances, while home insurance protects your home's structure and belongings against damage from perils like fire, theft, or storms.
Which is better, a home warranty or home insurance?: Neither is better because they serve different purposes, so you typically need both home insurance to cover catastrophic damage and a home warranty to cover everyday system and appliance breakdowns.
How much does a home warranty cost compared to home insurance?: A home warranty typically costs between $300 and $600 per year plus service call fees, while home insurance averages around $1,200 to $2,500 annually depending on location and coverage limits.
Can a home warranty replace home insurance?: No, a home warranty cannot replace home insurance because it covers wear-and-tear breakdowns of appliances and systems, not structural damage or liability from events like fires, floods, or lawsuits.
Is a home warranty worth it for a new home?: A home warranty is often less valuable for a new home because builder warranties and manufacturer warranties already cover new appliances and systems, so paying extra for duplicate coverage is usually unnecessary.
Does home insurance cover appliance breakdowns like a home warranty does? No, standard home insurance does not cover appliance breakdowns from normal wear and tear, which is exactly what a home warranty covers, so you need a separate warranty for those repair costs. What is the most common beginner mistake when choosing between a home warranty and home insurance?: The most common beginner mistake is assuming home insurance covers mechanical failures, so homeowners skip a home warranty and then pay hundreds out of pocket when an HVAC system or water heater fails.
Can I switch from a home warranty to home insurance or vice versa?: You can switch providers within each category, but you cannot switch between a home warranty and home insurance because they cover different risks, so you must maintain both policies separately.
Is a home warranty compatible with any home insurance policy?: Yes, a home warranty is compatible with any home insurance policy because the two are independent contracts, and having both simply means you have coverage for both breakdowns and catastrophic damage.
When should I use a home warranty instead of filing a home insurance claim?: Use a home warranty when a covered appliance or system fails from age or normal use, but file a home insurance claim when your home or belongings suffer damage from a sudden event like a fire, burst pipe, or theft.