Homeowners insurance, also known as home insurance, is a property insurance policy that provides coverage for a private residence. A homeowners policy typically covers losses and damages to your personal residence, as well as furnishings and certain other assets within your home. Home insurance may also offer liability coverage against certain types of accidents that occur within your home or on your property. Most mortgage lenders require a homeowners insurance policy.
Homeowners insurance is not the same as renter's insurance, which provides coverage for your personal property and liability protection for accidents that occur in your home or on your property. Homeowners insurance offers additional protection against certain types of losses, but typically does not cover a tenant's personal possessions or liability.
Home insurance provides coverage for the structure and building of your home, as well as any related outbuildings such as a detached garage. Homeowners policies typically cover losses resulting from fire, windstorm, theft, vandalism and other perils such as falling objects and lightning strikes. However, homeowners policies do not cover floods or earthquakes due to the unpredictable nature of these events. Floods are covered by separate flood insurance policies provided by the federal government's National Flood Insurance Program (NFIP).
If you live in a flood zone area that is underwritten by the NFIP, you may be required to purchase flood insurance if you have a mortgage loan on your home. Homeowners policies also provide liability coverage against accidental bodily injury or property damage caused by an insured person to others on their own property or premises. Liability coverage also extends to situations when an insured person injures someone else while driving their car or when they are riding their bike, motorcycle or other vehicle away from the home. For example: If you accidentally hit another car with yours while backing out of your driveway and cause damage to another vehicle or its contents; you're at fault. Liability coverage will cover the damage to the other vehicle and its contents up to your policy's limits.
In the case of an accident, liability insurance pays for injuries you or your family members cause to another person and their property. Liability insurance can help pay for medical bills, lost wages, pain and suffering and more. Your insurance company will also pay up to $1 million in defense costs if you're sued.
If you have a mortgage loan on your home, it's essential that you have adequate liability coverage because your lender may require you to carry at least $100,000 in liability protection for bodily injury or property damage per occurrence. If you don't have enough liability coverage, your lender may ask that additional funds be deposited with them as collateral until such time as there is enough coverage available from a source other than yourself (such as an umbrella policy).
There are several different types of homeowner insurance coverage to educate yourself on if you're not familiar with coverage types. We'll go ahead and explain some of the different types here.
Standard Homeowners Insurance Quotes & Coverage
When you think about home insurance, the policy you have in mind is most likely standard coverage. This coverage provides you with protection in four major areas. The first is the physical structure of your house. If natural disasters such as high winds, rain, or hail affect the building itself, homeowners insurance foots the bill. The second part of coverage concerns the items you have in your home. The third facet of homeowner insurance quotes, coverage you get pays the living expenses you incur while you wait for repairs, if your home is not habitable during this process. Finally, standard coverage gives you liability insurance in case someone gets injured when they are at your house.
This policy operates by naming specific perils that it provides coverage for. For example, wildfires are a common natural disaster that would be covered under this policy. If a wildfire damaged the siding on your home and the personal items that you have in it, your homeowners insurance claim would cover these losses.
The base level of coverage helps most clients, but there are always some situations that lay outside of the standard insurance policy. One of the most common reasons for getting additional protection is for perils that are outside the named ones. Earthquake and flood insurance are often added to a policy so all natural disasters are covered.
Another area for adding more types of homeowners insurance coverage is for providing additional protection for your personal belongings. You can insure a higher amount or switch from depreciating repair costs to replacement cost that doesn't look at the wear and tear on an item.
Pricing Types of Home Insurance Coverage
There are a lot of insurance carriers on the market. It would take countless hours to go through conversations with them all on a one by one basis. One of the best ways to price out homeowner insurance coverage is to use a tool that pulls multiple quotes for homeowners and other types of insurance. This tool allows you to look at quotes and compare them, instead of hoping the company you contacted first had one of the best rates.
We cannot state this enough. The best way to get free quotes for your home insurance is to use a free online quote service such as Quotecenters. com. You will see our quoting engine will also let you look at quotes from multiple companies all at once. This can be a great way to compare the prices and see who has the best deal available.
How Do You Know What Your Home Insurance Needs?
Homeowners insurance is an important type of coverage to have. It is one that protects you in case something happens to your home or belongings due to theft, fire, or weather damage. However, it is important that you know what your specific needs are and what coverage you need for those needs. This will make sure that you have the right amount of coverage for your specific situation and will allow you to lower the cost of your monthly premium payments by only getting coverage that you need instead of everything under the sun. There are a few things that can help determine how much coverage and what type of coverage is needed for a specific homeowner:
How much equity do I have in my property? Equity refers to how much money it would take if I were to sell my home today compared with how much debt I owe on it now. If there's a lot more money than debt then there's equity in the property and this means there's money available if repairs are needed after an incident occurs or if something gets stolen or broken while inside the property. How many people live in my house? The more people who live in a house, the more costly the coverage can be.
Simply enter your zip code in the quote box above and you could save significantly off what you're paying now.