If you’re a homeowner, you likely need financial protection for your home and belongings. After all, your home is probably your biggest investment, and some of your most valuable assets might also be within your home. Whether you’re in need of options or you have questions about the different types of coverage, keep reading to learn everything you might need to know about homeowners insurance.

Homeowners insurance is coverage for a home and its assets in the event of an accident. This involves an agreement between the homeowner and the insurance company, in which the insurance company will provide these financial protections in exchange for a monthly premium paid by the homeowner. The scope of what homeowners insurance will cover is dependent on the coverage the homeowner choose for the policy.

What Is Homeowners Insurance?

Because policies are tailored to the homeowner’s specific needs, coverage will vary from policy to policy. However, most policies will include the following coverage: • Dwelling. This covers damage to your home aside from any exclusions stated in your policy.• Personal property. This covers damage to belongings inside your home. Typically, it will be between 50% and 75% of your dwelling coverage.• Detached structures. This covers damage to structures—such as fences, woodsheds, and pools—that are outside your home but still on your property. Typically, it will be between 10% and 20% of your dwelling coverage.• Liability. This covers damages and legal fees if someone else or their belongings are damaged on your property.• Medical expenses. This covers the medical treatment someone might need if they are injured on your property.• Additional living expenses (ALE). This covers the cost of other accommodations while your residence is uninhabitable.

What Does Homeowners Insurance Cover?

While homeowners insurance is not a requirement in any state, lenders will typically require a homeowners insurance policy for a mortgage or home loan. In any case, homeowners insurance is a wise investment, regardless of whether you have a home loan or own your home outright.

Is Homeowners Insurance Required?

Because all homes are different, there are various types of homeowners insurance that companies offer. While HO-3 is the standard policy for most homes, you should be aware of the other types that are offered: <ul><li>HO-1: This policy provides very basic coverage for your home’s structure only. Assets and belongings are excluded. It is a named perils policy, meaning it only protects against certain events.</li><li>HO-2: In addition to your home’s structure, this policy provides coverage for personal property, liability, and additional living expenses. It is also a named perils policy.</li><li>HO-3: This is the standard homeowners insurance policy. It is an open perils policy that includes all of the essential types of coverage.</li><li>HO-4: This policy is designed to cover renters’ personal belongings, which means that the home’s structure is not covered in the policy.</li><li>HO-5: This policy features similar coverage to HO-3, but extends coverage to more perils for dwelling and personal property.</li><li>HO-6: This policy is designed for the condominium owner. It protects their unit’s interior, as the unit’s exterior may already be covered under the master condominium policy.</li><li>HO-7: This policy is designed for mobile homes. It covers the home itself, personal property, liability, medical expenses, and additional living expenses.</li><li>HO-8: This policy is designed primarily for older or historical homes that have high repair and replacements costs. Only 10 perils are covered in this named perils policy.</li></ul>

What Are the Types of Homeowners Insurance?

<h2>How to Buy Homeowners Insurance:</h2><h3>Follow these four steps to buy a homeowners insurance policy:</h3> 1. Determine what needs to be covered. List not only your home’s structures, but also all of the assets and belongings within your home that need to be insured. While you’re at it, gather details about your home—such as its age, square footage, number of rooms, and more—as an insurance company will need this information to give you a quote. 2. Find out how much coverage you need. Using your list of structures, assets, and other belongings, estimate how much money you would need to rebuild or replace all of these line items. 3. Contact an insurance company for a quote. Research the top homeowners insurance companies in your area and contact them for quote. Most companies allow you to do this online by filling out a short questionnaire about you and your home. It’s wise to get quotes from multiple companies and compare them—both for coverage and for price. 4. Choose your policy. Find the policy that best meets your needs and budget. Make sure the policy includes all of the standard coverage—dwelling, personal property, detached structures, liability, medical expenses, and additional living expenses. Finally, contact the company to purchase the policy.

<h2>What Factors Affect Homeowners Insurance Costs?</h2>Companies may use the following factors to help determine your homeowners insurance rates: <ul><li>Your location. Rates vary from not only state to state but also zip code to zip code. Insurance companies may even take your home’s distance from water, fire stations, and police stations into account.</li><li>Your home’s age. Older homes are typically more expensive to insure, as their systems may be more outdated and more susceptible to breaking down.</li><li>Your claims history. Homeowners insurance companies see you as more likely to file a claim if you have filed one in the past, and you may pay higher premiums because of it.</li><li>Your marital status. If you are married, you may be seen as less of a risk than a single person and pay lower rates as a result.</li><li>Your credit score. Generally, those with higher credit scores and better credit history enjoy lower rates than those who don’t.</li></ul>

<h2>Ways to Save on Homeowners Insurance:</h2>There are multiple ways to save money on your homeowners insurance policy. Consider some of the following options: <ul><li>Get multiple quotes. When shopping, it’s best to compare a handful to companies for the cheapest option.</li><li>Ask the insurance company about discounts. Some companies will not openly advertise every last discount, so you might miss something you’re eligible for unless you ask.</li><li>Bundle home and auto insurance. Many companies will allow you to save extra money by purchasing these policies together.</li><li>Consider increasing your deductible. This will raise the amount you must pay out of pocket during a claim but will also lower your monthly premium.</li><li>Try to avoid small claims. Filing a claim can cause your rates to increase, so consider whether it’s worth filing a claim after a relatively minor incident.</li><li>Invest in home security. Insurance companies like secure homes. Depending on the company, upgrading your locks, alarms, and smoke detectors could earn you a discount.</li><li>Work on improving your credit score. As credit scores often affect premiums, building good credit could help you lower your rates.</li></ul>

<h2>Frequently Asked Questions:</h2>

Because all homes are different, coverage needs vary from homeowner to homeowner. You can estimate how much coverage you might need by making a list of your home details, detached structures, personal belongings, and any other items you need to be covered under your policy. Then, determine the total cost to rebuild or replace everything. Of course, you should consider speaking with a licensed agent to confirm your coverage needs.

How Much Homeowners Insurance Coverage Do I Need?

Homeowners rates vary from company to company, customer to customer, and state to state. To find the cheapest homeowners insurance for you, it’s recommended that you compare rates every six months.

What Company Has the Cheapest Homeowners Insurance?

While filing a claim is as simple as picking up the phone to contact your insurance company, there are three steps you should take after an incident to ensure that the claim is filed properly: 1. Determine if you need to file a police report. Not every incident will require a police report, but incidents that potentially involve a crime—such as theft or vandalism—should be reported to the police. Your insurance company may ask for this. 2. Assess and document the damage. Next, survey the damage to your property. Take plenty of photos and determine if there are any repairs that need to be addressed immediately. If you pay for any repairs yourself, be sure to keep any receipts so you can seek reimbursement later. 3. Contact your homeowners insurance company. Finally, let the insurance company know that you need to file a claim. Depending on the company, you may be able to do this over the phone or through their app. Upload any documentation supporting your claim.

How Do I File a Homeowners Insurance Claim?

Homeowners Insurance

Top Homeowners Insurance Companies Of 2024

<ul><li>The sixth-largest auto insurance company in the United States.</li><li>Allows customer to bundle multiple policies for added savings.</li><li>The company claims that customers could save 10% when buying customized home insurance online.</li><li>Liberty Mutual offers a wide variety of coverage options, allowing customers to get the ideal coverage for their home.</li><li>The company also offers 12 different discounts to eligible homeowners.</li></ul>

Liberty Mutual

Liberty Mutual Homeowners Insurance

<ul><li>The company offers wall-to-wall coverage, and policies start at just $25 per month. Policies are easy to manage via their mobile app or online.</li><li>Lemonade offers discounts for bundling with other policies and for installing protective devices in your home.</li><li>Once a claim is paid, Lemonade’s Giveback program donates any leftover money to your preferred charity from their list of options. As a Public Benefit Corporation and certified B-Corp, Lemonade is even held accountable for their social impact.</li><li>They are also an A-rated company — backed and regulated by some of the most trusted names in the industry.</li><li>Currently, Lemonade only offers homeowners insurance in AZ, CO, CT, GA, IL, IN, IA, MD, MA, MI, MO, NV, NJ, NY, OH, OK, OR, PA, TN, TX, VA, WI, and Washington D.C.</li></ul>