What is Home Insurance?
Homeowners insurance, also referred to as home insurance or property insurance, protects a home against damages to the house itself or possessions in the home. Homeowners insurance provides liability coverage against accidents within the home or on its property.
Home Insurance FAQ
What Does Homeowners Insurance Cover?
Homeowners insurance provides coverage for a range of risks a homeowner may face that could otherwise be financially challenging to cover. These risks include:
Property Damage– Damage and destruction to your residence and/or detached structures. You receive compensation (up to the policy limits) if your house or other property is damaged due to a covered hazard. Standard covered circumstances include things like hurricanes and vandalism, but other hazards may be excluded.
Personal Property Loss– Damage or theft of personal property, up to your set policy limits. Covered circumstances typically excludes flooding, earthquakes, and personal negligence. If personal property is very valuable you’ll need special endorsements on your policy.
Personal Liability– If you, a family member, or even a pet causes an injury or property damage, homeowners insurance can protect you. Insurance can cover medical and property repair within the policy limits. There are exclusions which may be found in a policy, such as aggressive acts against a neighbor.
Added Living Costs– If a house is uninhabitable, homeowners insurance can pay for alternative living arrangements while the home is repaired or rebuilt. Depending upon the homeowners insurance company and the policy, this may be included or may be an optional coverage.
When Should I Get Homeowners Insurance?
You should purchase homeowners insurance before you contact a mortgage company for a loan. Most mortgage companies will require you have homeowners insurance prior to giving you a home loan, so it is important to consider insurance in the earliest stage of the home buying process.
It’s important to find the right policy for your needs. There are many factors that help determine the right insurance coverage for each homeowner.
How Much Does Homeowners Insurance Cost?
The value of the home and the amount of coverage are the primary factors in what you pay for your premiums. There are other factors that can affect your premium such as the crime rate in your area, how many claims have been filed in the past, and the state you live in.
There are so many factors that affect the cost of homeowners insurance. A typical annual premium can range anywhere from $400 to $1500, or more for a high value home. Additional coverage costs more, but offers more protection.