Finance
What is a home warranty and how does it differ from homeowner's insurance?
AThey are the same product
BA home warranty covers repair/replacement of home systems and appliances; insurance covers damage from unexpected events✓ Correct
CInsurance covers appliances; warranties cover structural damage
DHome warranties are government-provided; insurance is private
Explanation
A home warranty covers service, repair, or replacement of home systems (HVAC, plumbing, electrical) and appliances that break down due to normal wear and tear. Homeowner's insurance covers damage from sudden, unexpected events like fire, theft, and weather.
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