The Ins and Outs of Homeowners Insurance Coverage
There are 127.59 million homeowners in the United States.
If you’ve landed on this article, chances are you’re one of them, or you’re going to be one.
Being a homeowner is an exciting, rewarding goal for many people. Something that comes hand-in-hand with owning a home is having homeowner’s insurance coverage. Insurance is necessary before the banks can issue you a mortgage.
Insurance policies like this are required for a good reason.
Simply put, we can’t expect the unexpected. Having a policy in place not only offers you peace of mind, but it can help you in the event of something unforeseen happening. This way, an emergency won’t put you into debt—your insurance provider will help you through.
So, if you’re unsure what homeowner’s insurance is, exactly, keep reading. We’ll explain the ins and outs, including what it covers, what it doesn’t, options you may need to consider, and more.
What Is Homeowner’s Insurance?
Just like auto insurance, homeowner’s insurance protects your investment if anything unexpected were to happen.
This form of property insurance covers potential losses or damages (both interior and exterior) to your home and its property. It also protects your assets within the home—things like art, expensive furniture, jewelry, etc.
Every policy has a liability limit. This number is the amount of coverage you’d get in the event that something happened. Before that, you’d have an agreed-upon deductible—the amount you have to pay before insurance kicks in.
Say your home suffered water damage after a hurricane.
A claims adjuster would evaluate the damage and come up with a claim. They submit this claim to your insurance provider. If they approve the request, you will pay your deductible, and the insurance provider would pay for the excess damages.
This is especially crucial when devastating things occur. One hurricane, flood, or burglary could bring you into debt. An insurance provider could help you navigate the financial struggles if this were to happen.
Homeowner’s Insurance Coverages
Homeowner’s insurance, in general, covers the following things.
However, this can be adjusted based on what you need, where you live, and other factors.
Dwelling
Dwelling covers your home and everything that’s attached to it, such as your garage.
If something were to happen to the structure of your home, this is where dwelling coverage comes in.
Say water damage affects your floors, causing you to have to redo them. Dwelling protection could help you get new flooring. Or if lightning were to strike your home during a storm, causing electrical damage or power surges, you’d need dwelling coverage.
Personal Possessions
This is for items within the home.
Say you’re the victim of a burglary, and your valuables get stolen. Personal possessions protection would cover the missing items.
Additionally, if your possessions suffered water damage during a storm, this policy would also cover them.
Loss of Use (Of the Home)
Not only does homeowner’s insurance cover your home, but it also covers your living expenses if your home becomes unlivable.
If damage to your home results in loss of use, this protection would help you pay for hotels, renting, and the like.
Personal Liability Coverage
In the unlikely and unfortunate event that someone wants to sue you, you’d need personal liability coverage.
Say someone takes a fall on your sidewalk—for example, the mailman slips on a patch of ice. If they were to sue you as a result, this policy would kick in to help you cover it.
Medical Coverage
Taking the above example, if the mailman were to then have surgery or medical bills, medical coverage would help you pay these.
Other Structures
This policy covers things that are not an integral part of your dwelling.
This can mean something like a pool, backyard shed, your fence, and the like.
What Homeowner’s Insurance Does Not Cover
Homeowner’s insurance typically covers a wide range of possibilities, but there are some things it isn’t responsible for covering.
Additional policies you may need to consider are:
- Flood insurance
- Sinkholes
- Earthquake insurance
- Landslides or mudslides
Now, this isn’t to say you won’t get coverage for these things.
You can—they would just require either a separate policy or add-ons to your current policy outside of the general coverage. This would cost you a bit more than your typical homeowner’s insurance.
This is important if, say, you live in Florida near the beach, where the threat of flooding is more common.
Additionally, you can consider other add-ons, such as water back-up insurance.
This would be essential if, say, your sewer system gets damaged (a costly endeavor), or your sump pump backs up and requires replacing.
How to Save Money on Homeowner’s Insurance
It’s worth noting that homeowner’s insurance is worth every penny.
However, you can try to save money on your policy in various ways.
First, do your research. Compare quotes from multiple insurance providers to ensure you’re getting great coverage at an affordable price. Review testimonials from previous customers and ask family and friends for advice.
Some providers even offer multi-policy discounts.
For example, if you’re already paying for business or personal insurance through one provider, see if they offer deals to add another policy to your plan. This could end up getting you a discount while making communication and bill-paying easier, as you only have one point of contact.
Specific preventative measures can provide you with a discount, too. For example, if you’ve got a security alarm installed or fire extinguishers throughout the home, you could potentially see a decrease in costs.
It’s Essential to Protect Your Investment
Having the right homeowner’s insurance coverage is what will protect your investment.
Buying a home is arguably one of the biggest things you’ll ever invest in. Why take the chance that something adverse could happen to your home sweet home?
Having a policy in place is essential. Even more than that, you need the right plan—one that is designed specifically for your home, location, income, needs, and more.
We want to help you and your home stay safe and secure.
Contact us today to get the homeowner’s insurance process started. We can provide you with a fair quote as well as answer any more questions you may have.
Are you Located in Anaheim, CA or Orange County (OC)? Feel free to stop by our office and talk to one of our Anaheim home Insurance Agents to get a homeowners insurance quote in person.
