Homeowners Insurance

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Homeowners Insurance: Compare Homeowners Insurance Quotes

Protect Your Property with Homeowners Insurance

Homeowners Insurance offers protection for you and your home against many common perils like fire, theft, vandalism, wind damage, hail damage, water damage (non-flood), riots, and explosions. Home Insurance falls under the broad category of property and casualty insurance, not life and health insurance. It differs from other forms of personal property insurance like Condominium Insurance and Renters Insurance.

Homeowners policies are not designed to cover business or rental properties. If you are using your home for business, however, or are renting part of it out, you might want to consider carrying more liability coverage, since you have greater exposure to injuries on your property, and the lawsuits that follow them. Premiums are based on many factors, including the number of claims in your area (high crime areas usually cost more), your own claim history, the value of your home, the amount of your deductible, special factors (like pools and trampolines), your credit history, and any fire/theft safety measures you’ve taken or installed.

What Does Homeowners Insurance Cover?

A typical homeowners policy covers:

The dwelling/structure (including attached garage). Unattached structures (garages, tool sheds, swimming pools) may or may not be covered, depending on the policy.
Personal property, like furniture, clothing, and appliances, up to a certain predetermined limit. Most policies also cover theft or damage to personal property away from home.
Personal liability for accidents that occur on your property, or that are caused off your property by your family members or pets.
Temporary living expenses (loss of use) should you have to live elsewhere while your home is repaired.

Who Does Homeowners Insurance Cover?

The average homeowners insurance policy covers:

The owner/occupant of the dwelling.
An additional family or two roomers per one family (residence must not exceed four families).
The home must be used strictly as a residence (this does not include schools, offices, or studios).
Individuals with dwellings that are seasonal, secondary, or under construction (this excludes the construction of a new home).

Most banks and lending institutions require proof of Homeowners Insurance before they’ll issue a mortgage. Home Insurance is such a basic form of insurance that it is recommended for all those who own homes, even those whose mortgages are paid in full.

How Much Homeowners Insurance Do You Need?

According to a report released on Nov.25, 2019 by the National Association of Insurance Commissioners (NAIC), the average homeowners insurance premium for the most common type of home insurance was $1,211, 63% of which had coverage amounts written between $50,000 and $300,000. As homeowners, you should always consider the limits on your insurance policy to be high enough to cover the cost to:

rebuild your home (dwelling coverage)
replace your assets (personal belongings)
cover injuries, and protect you from damages that may occur to other people while on your property (liability coverage)
reimburse your incremental living expenses after the loss of an insured home (additional expenses)

Only after you know what to consider for your homeowners insurance policy, will you find the right coverage for your needs and your budget.

What Factors Affect Your Homeowners Insurance Rates?

The coverage amount you choose
Home condition (age, security and safety system)
Location (especially if you live in areas prone to natural disasters like flood or wildfire)
Claim frequency, history and severity
The neighborhood, its crime rate and building material availability
Deductible amount you choose
Credit score and history
If you operate a home-based businesses
Number of pets and pet breeds
Marital status

Discounts You can Uncover

Raise deductible
Multiple policy discounts
Renovation or remodeling
Pay off mortgage
Claim-free discounts
Smart home (check the infographic below)

If you want to learn more savings tips, go to 9 Ways You Can Save Money on Homeowners Insurance.

Homeowners Insurance Claim Process

File police report if needed
Call your insurance company or your advisor immediately
Fill out claim forms quickly and submit them to avoid delays
Have the insurance adjuster inspect the damages you have
Take pictures and document all damage, stolen items, etc. This is when a home inventory list comes in handy. Check How to Create a Home Inventory List.
Make any urgent repairs, and keep copies of all receipts for reimbursement

When discussing valuation with the insurance adjuster, don’t be afraid to dispute their analysis and fight for every reimbursement amount you can get. Remember you’re entitled to those funds, which is why you purchased insurance in the first place. Also, pay attention to every detail as insurance companies surely won’t pay you for anything you left out of your claim.

What Is HOA Protection?

Homeowners Association, also known as HOA Protection, is founded and run by residents to cover the costs of maintaining a building’s common areas. Note that HOA fees don’t cover everything in common areas and won’t cover your personal property. You can learn more on Insuring Your Home In An HOA Community.

Additional Homeowners Insurance Information

As stated above, banks and lending institutions usually require proof of Insurance before issuing a mortgage. The amount they require may only cover the structure itself, not your personal belongings, so consider their requirement a bare minimum.

You’ll have to decide if you want to insure for the actual cash value or the replacement cost of your home and possessions. If your television is five years old, it’ll cost a lot more to replace it than what it’s actual cash value. Replacement cost policies typically cost more.

Depending on your situation, you may want to purchase flood or earthquake insurance, as most standard homeowners policies don’t cover these disasters. You might also want an additional rider to cover especially valuable items like jewelry, antiques, stamp or coin collections, cameras, or electronic equipment.

It’s a good idea to keep receipts of all major purchases and an inventory of all your possessions (a hard copy list and pictures or videotape) in a safety deposit box. Be sure to record serial numbers and any other identifying information. This will help determine how much coverage you need, and will simplify the process if you ever have to make a claim.

Also, you should periodically review your homeowners insurance policy to account for inflation and for any additions, renovations, or upgrades you’ve made to your home.

Looking for added security?

Along with 24/7 Home Security monitoring, ADT offers smart home automation including: doorbell camera, doorlock, thermostat, indoor/outdoor cameras, smoke/carbon detectors, and smart bulbs. Click here or call (844) 524-6502 to learn how you can receive free installation on a Home Security Package.