Equipment Breakdown vs Home Warranty

 BREAKDOWN COVERAGE VS HOME WARRANTY . These products get confused in the market. The difference is Breakdown is very inexpensive $2-3/mo and covers your electrical and mechanical items in your home from a sudden, direct and accidental breakdown frequently related to failures of circuitry or control panels as well as motor failure. It does not cover wear and tear. Breakdown has a $500 deductible and usually involves the more expensive items in the home like HVAC system and or major appliances.  Home warranty is more expensive from $46to $70 per month but it covers wear and tear as well as items like plumbing lines , faucets , toilet mechanisms etc and usually with a $100 deductible or service call fee. You can have both or one or the other . With the warranty you are required to use their contractors and or more at their discretion on repairs whereas with Breakdown you can use contractors of your choice . Which is best for you depends on your budget and tolerance for risk up to a certain dollar amount . If you can fix the little stuff and or have a handyman to call that is reasonable the Breakdown covers you for the big stuff very inexpensively. If you rather have someone on call so to speak  and cover a broader range of items including wear and tear then the Warranty may be best for you though at a much higher monthly  price .