While a home warranty may provide coverage for an appliance that's stopped working, what happens if someone steals your belongings or your home is damaged by fire?

A typical homeowners insurance policy may help pay to repair your home or replace your personal property after a covered event (also known as a peril) such as theft or fire. However, homeowners insurance typically will not provide protection if, for instance, your air conditioner or other appliance breaks down or is defective.

Homeowners insurance typically also comes with liability coverage, which may help pay legal fees or medical bills if you're found responsible after a visitor is injured at your home.

It's important to note that coverage limits will always apply. Your insurance provider can help you determine whether you have enough protection in place should you experience a loss.

A home warranty and a homeowners insurance policy offer different types of coverage that may give you peace of mind as you consider certain scenarios.