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Homeowners Insurance Guide

Homeowners Insurance Guide For Beginners
Table of Contents

Welcome to the comprehensive homeowners insurance guide, a vital shield for your home, possessions, and personal liability. With over 30 years of experience in the insurance industry, I’ve seen firsthand the critical role homeowners insurance plays in safeguarding one’s most significant investment. This guide is designed to walk you through the essentials of homeowners insurance, elucidate the varying coverage levels, and provide practical advice on selecting the right policy for your needs. Let’s dive into the world of homeowners insurance with an experienced eye.

Is Homeowners Insurance Just an Option?

Imagine the unthinkable: your home, the center of your family’s life and memories, sustains severe damage due to a natural disaster or fire. Or consider the stress of a burglary, losing not just possessions but the sense of security. In these moments, homeowners insurance transitions from a “nice-to-have” to an indispensable ally. Not only does it protect your dwelling and belongings, but it also offers a safety net against potential liabilities.

What Makes Homeowners Insurance a Necessity?

Homeowners insurance intends to protect you and your property. Your home and all the belongings in it will be financially taken care of in the event of damage or theft. But that’s not the only reason having homeowner’s insurance is extremely important.

In today’s world, virtually all mortgage lenders require proof of homeowner’s insurance. Also, this insurance must cover the full value property of your home. Without it, many lenders won’t offer you a loan.

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Even if you’re renting, most landlords require renter’s insurance. But, even if your landlord doesn’t, it may still be a good idea to keep your home covered.

Damage, theft, and vandalism can all be financially devastating. Homeowner’s insurance helps absorb those costs, so you can easily get back on your feet.

Is Homeowners Insurance Necessary for Renters?

Although primarily associated with homeowners, insurance necessity extends to renters as well. Landlords often require renters to obtain insurance, protecting tenants from financial loss due to damage or theft of personal belongings and potential liability for injuries occurring within the rented premises.

Why Do Mortgage Companies Insist on Homeowners Insurance?

Virtually all mortgage lenders mandate homeowners insurance as a loan condition to safeguard the investment from unforeseen damages. This requirement underscores the policy’s importance, ensuring that both your interests and the lender’s are protected throughout the mortgage term.

What Does a Homeowner’s Policy Cover?

Absolutely, let’s dive deeper into the aspect of homeowners insurance that pertains to damage to your home. Understanding the nuances of what is and isn’t covered can significantly impact your financial planning and preparedness for unexpected events. Below, we’ll explore the types of damages typically covered by a standard homeowners insurance policy and highlight the common exclusions, providing insights into additional protections you might need.

Covered Damages in Homeowners Insurance

Homeowners insurance policies are designed to protect your home against a variety of risks. Here’s a breakdown of commonly covered perils:

Covered Peril Description
Fire and Smoke Damage from house fires, wildfires, and smoke.
Windstorms and Hail Includes damage from hurricanes and tornadoes.
Lightning Strikes Electrical surges and direct strikes.
Vandalism and Theft Malicious destruction and theft of property.
Explosions From gas leaks or other sources.
Vehicle or Aircraft Impact Damage from vehicles or falling aircraft.
Riot or Civil Commotion Damage caused by group disturbances.
Falling Objects Objects that fall and damage your home (e.g., tree limbs).
Weight of Ice, Snow, or Sleet Structural damage due to heavy snow or ice.
Water Damage Certain types of water damage, such as from a leaking roof (but not floods).

Common Exclusions

While homeowners insurance covers a wide range of perils, there are notable exclusions. Understanding these will help you identify where you might need additional coverage:

Exclusion Description
Floods Damage from flooding is not covered under standard policies. Flood insurance must be purchased separately through the National Flood Insurance Program (NFIP) or private insurers.
Earthquakes Seismic events require a separate earthquake insurance policy.
Maintenance Issues Damage due to neglect or failure to maintain the home (e.g., mold, termites).
Intentional Loss Damage caused on purpose by the homeowner.
Government Action Seizure or destruction of property by government or law enforcement.
Nuclear Hazard Damage from nuclear events is excluded.
War Damage caused by war or warlike actions.

Additional Coverage Options

For comprehensive protection, consider these additional insurance options based on your home’s location and specific risks:

Flood Insurance: Essential if you live in a flood-prone area. Provides protection against water damage from flooding.

Earthquake Insurance: Offers coverage for damage due to seismic activity, crucial for homes in earthquake-prone regions.

Maintenance-Related Coverage: While standard policies don’t cover maintenance issues, some insurers offer endorsements for sewer backups or mechanical breakdown coverage.

Umbrella Policy: Provides additional liability coverage beyond the limits of your homeowners policy, including certain situations that might not be covered under standard personal liability.

Your Homeowners Insurance Guide to Understanding Your Policy

It’s vital to thoroughly review your homeowners insurance policy to understand the specific coverages, limits, and deductibles. Each policy can vary significantly, and what’s covered under one policy might be excluded in another. Always discuss with your insurance agent to tailor your coverage to fit your needs, ensuring you’re not left vulnerable to uncovered risks.
Personal Property

How Are Your Possessions Protected?

Homeowners insurance plays a pivotal role when it comes to protecting your belongings. This coverage isn’t just about the structure of your home; it extends to the personal items that make your house a home. Whether it’s the sofa where your family gathers to watch movies, the laptop you use to work from home, or the clothing in your closets, your possessions are covered against losses due to covered disasters like fires, theft, or storms.

Personal Contents of Your Home

Your possessions, such as clothes, furniture, or jewelry, are also protected under standard homeowner’s insurance. However, these are only protected when damaged in an insured disaster or theft.

It is also possible to add special “off-premises” coverage for your items. This allows you to file a claim no matter where you lost or damaged the item. So, if you lose that expensive diamond necklace on your travels, it’s covered.

This additional protection is beneficial for high-priced items. Special coverage riders exist for expensive art, jewelry, furniture, or clothing. However, there are limits on reimbursement amounts.

Most policies will cover 50-70% of the amount of insurance you have on the home. So, if you have $200,000 in coverage on your home, you’ll receive $140,000 in coverage on your possessions.

Higher-priced items will again need special riders or separate policies. Or, you could raise your coverage ceiling with higher premiums.

Personal Inventory List: Your Best Ally

Maintaining an up-to-date inventory of your possessions, complete with receipts, photos, or videos, can be invaluable in the event of a claim. This detailed list can expedite the claims process, ensuring you’re fairly compensated for covered losses.

Off-Premises Coverage: A Closer Look

One of the most valuable features of your homeowners policy might be its “off-premises” coverage. This means that even if your belongings are lost, stolen, or damaged away from your home—whether you’re traveling across the globe or simply at the local coffee shop—your insurance can still cover the loss. However, it’s important to be aware of the limits. Most policies cap the reimbursement for off-premises losses at a percentage of your total personal property coverage. For high-value items like jewelry, art, or high-tech gadgets, consider purchasing additional coverage through a rider or floater to ensure full protection.

What About Personal Liability Coverage?

Personal liability coverage is your financial safeguard against the cost of lawsuits for bodily injury or property damage that you or your family members (including pets) cause to other people. It’s a critical component of homeowners insurance that extends far beyond the physical boundaries of your home.

For Example, if a neighbor slips and breaks a hip on your property and decides to sue, you’re covered.

In some cases, liability coverage even extends to pets. So, if Fido bites the Jean neighbor and she decides to sue, you’ll be covered for that, too.

Policies offer coverage for as little as $100,000. However, experts at the Insurance Information Institute recommend a baseline of $300,000 for most households.

Umbrella policies are also available. Umbrella Insurance allows you to increase your liability coverage for a few hundred dollars in premiums to receive an extra $1 million or more in coverage. For homes with dangerous pets, for example, this could be a worthwhile addition to your policy.

Liability Coverage In Action

Imagine your dog bites a neighbor while on a walk or a guest slips on your icy front steps and requires medical attention. In these situations, your liability coverage kicks in, covering medical bills, legal fees, and any damages awarded up to the limits of your policy. Experts typically recommend carrying at least $300,000 in personal liability coverage, but for added security, consider an umbrella policy, which provides broader coverage and higher limits beyond what your standard homeowners policy offers.

Coverage for Additional Living Expenses During Home Repairs

Should a covered disaster render your home uninhabitable, the additional living expenses (ALE) coverage within your homeowners insurance becomes a lifeline. This coverage reimburses you for the cost of living away from home during repairs, including hotel bills, meals, and other incidental expenses.

Understanding ALE Limits

It’s crucial to understand the limits and duration of your ALE coverage. Policies often set both daily and total limits on the amount you can spend. Planning wisely and keeping meticulous records of your expenses during this period are essential steps to ensure you’re fully leveraging your coverage without exceeding policy limits.

The Role of ALE in Your Recovery

The value of ALE coverage cannot be overstated—it’s about maintaining your family’s standard of living during what can be a highly stressful time. Whether it’s ensuring your children can attend the same school or keeping your commute to work consistent, ALE coverage helps minimize the disruption to your daily life.

In summary, understanding the breadth and depth of your homeowners insurance coverage—from protecting your personal possessions and safeguarding against personal liability, to covering additional living expenses during home repairs—ensures that you’re well-prepared to handle the unexpected. Remember, the goal of homeowners insurance is not just to rebuild structures but to safeguard your way of life against unforeseen.

Hotel Rentals in Case of Emergency

In certain emergencies, your home may be so damaged it becomes unlivable. If you should find yourself houseless because of a covered emergency, homeowner’s insurance will cover the cost of a hotel or home rental. So, you’ll remain housed while the home is being repaired/rebuilt.

This coverage also includes additional living expenses. These include hotel rooms, restaurant meals, and other incidental costs.

Be cautioned, though, that these policies almost always come with strict daily or total limits. However, by paying more in coverage, you can expand these policy limits.

Understanding Coverage Levels

Actual Cash Value vs. Replacement Cost vs. Guaranteed Replacement Cost

The spectrum of homeowners insurance coverage ranges from actual cash value, which accounts for depreciation, to replacement cost policies that cover the full cost of repair or rebuilding without depreciation. At the pinnacle is guaranteed replacement cost coverage, offering the most comprehensive protection by covering rebuilding costs, even if they exceed the policy limit.

Exclusions in Homeowners Insurance

While homeowners insurance covers a wide array of perils, it’s crucial to recognize common exclusions, such as damage from floods, earthquakes, and neglect, and consider additional policies or riders for these risks.

Home Insurance Rates - Shopping for House Insurance

Understanding the Ups and Downs of Home Insurance Rates

When it comes to protecting your home, having the right insurance policy is like having a safety net for your most valuable asset. However, just like the ebb and flow of the tide, home insurance rates can fluctuate. Being aware of what can cause these changes helps you navigate your options more effectively. Here are some key factors that can lead to an increase in your home insurance premiums:

1. Location, Location, Location

The geography of your home plays a significant role. If you’re nestled in an area prone to natural disasters such as floods, hurricanes, or wildfires, insurers might see your home as a higher risk, which can nudge your rates upward. Even urban vs. rural settings can impact rates due to factors like crime rates and the proximity of emergency services.

2. Age and Condition of Your Home

Older homes, while charming, often come with higher insurance costs. This is because they are more susceptible to structural issues, plumbing problems, and electrical hazards. Regular maintenance and updates, especially to critical systems like roofing, plumbing, and electrical, can help mitigate these increases.

3. Home Improvements

While upgrading your home can increase its value and appeal, certain renovations, such as adding a pool or a high-end kitchen, can also raise your insurance premiums. These improvements can either increase the replacement value of your home or pose additional risks (like a pool potentially leading to liability claims).

4. Safety Features and Security Measures

Conversely, installing safety devices such as burglar alarms, smoke detectors, sprinkler systems, and storm shutters can lead to discounts on your premiums. Insurers often view these features as risk mitigators, reducing the likelihood of claims.

5. Personal Claims History

Your track record of filing insurance claims can significantly impact your rates. A history of multiple claims can signal to insurers that you pose a higher risk, leading to higher premiums. It’s a balance between using your insurance when necessary and managing smaller issues independently when feasible.

6. Credit Score Influence

In many states, insurance companies use credit scores as one of the factors in determining rates. The rationale is that individuals with higher credit scores are less likely to file claims. Therefore, maintaining a good credit score can be beneficial not only for your financial health but also for keeping your insurance costs in check.

7. Policy Choices

The details of your policy—like the size of your deductible, the limits you set, and the scope of coverage—can all influence your premium. Opting for a higher deductible can lower your monthly payments, but it’s important to ensure it’s an amount you can comfortably afford in case of a claim.

Insurance rates are determined by the risk of filing a claim, influenced by factors like past claims, the home’s condition, and location. Understanding these factors can help you navigate your policy options more effectively.

Factors include the number of past claims submitted by the homeowner. Claims associated with the property itself are also considered, even if a previous owner filed them. Insurers take special notice if there have been multiple filed claims for the same problem.

Additional factors, like the credit of the homeowner and the house or neighborhood condition, are also taken into consideration.

It’s important to remember that while insurers want to keep you protected, they also want to turn a profit. The more high-risk a home or homeowner is, the more likely they’ll have to pay for expensive claims.

Smart Strategies to Lower Your Home Insurance Rates

Securing the best possible rate for your home insurance doesn’t have to be a game of chance. By taking deliberate steps, you can influence your premiums and enjoy quality coverage without breaking the bank. Here are practical tips to help you reduce your home insurance rates:

1. Boost Your Home’s Security

Enhancing your home’s security can lead to significant savings on your insurance premiums. Consider installing a monitored security system, smoke detectors, carbon monoxide detectors, and fire sprinklers. Not only do these improvements make your home safer, but they also demonstrate to insurers that your property is less of a risk.

2. Opt for a Higher Deductible

Increasing your deductible—the amount you pay out of pocket before your insurance kicks in—can lower your monthly premiums. Just ensure the deductible is an amount you can comfortably afford in an emergency. This strategy is about balancing potential savings with the reality of your financial situation.

3. Bundle Your Policies

Many insurance companies offer discounts if you bundle multiple policies, such as home and auto insurance, with them. This not only simplifies your insurance management but can also lead to substantial savings.

4. Review and Update Your Policy Regularly

Your insurance needs can change over time. Regularly reviewing your policy ensures that you’re not over-insured or paying for coverage you no longer need. For instance, if you’ve sold a high-value item that was specifically listed on your policy, removing it could lower your premium.

5. Make Smart Home Improvements

Certain home improvements can make your home more resistant to damage and reduce your insurance risk profile. Upgrading your roof, reinforcing windows, and modernizing your plumbing and electrical systems can lead to lower premiums. Always inform your insurer about significant upgrades to ensure your improvements are reflected in your premiums.

6. Shop Around and Compare Rates

Don’t settle for the first quote you receive. Insurance rates can vary widely between companies, so it pays to shop around. Use online comparison tools or consult with an independent insurance agent to find the best rates for the coverage you need.

7. Inquire About Discounts

Insurance companies often offer a variety of discounts that you may not be aware of. These can include discounts for being a non-smoker, having a claim-free history, or being a senior citizen. Always ask your insurer about any available discounts that could apply to you.

8. Consider the Impact of Personal Property Limits

Evaluate your personal property coverage limits and the value of your possessions. You might be paying for more coverage than you need. Conducting a home inventory can clarify the value of your belongings and help you adjust your coverage accordingly.

By implementing these strategies, you can take control of your home insurance costs while ensuring you have the protection you need. Remember, the goal is to strike a balance between adequate coverage and affordable premiums, safeguarding your home and your financial well-being.

How Do I Find the Best Homeowners’ Insurance Policy?

Navigating the world of homeowners’ insurance can feel like a daunting task, but with the right approach, you can secure a policy that offers comprehensive protection at a competitive rate. Here’s how to find the best homeowners’ insurance policy for your needs:

1. Assess Your Coverage Needs

Start by understanding the level of coverage you need. Consider the replacement cost of your home, not just its market value, to ensure you have enough coverage to rebuild in case of a total loss. Don’t forget to evaluate your personal property and any specific valuables that might need additional coverage.

2. Understand Policy Types

Familiarize yourself with the different types of homeowners’ insurance policies available, such as HO-1, HO-2, HO-3, and so on. Each offers varying levels of protection, from basic coverage to comprehensive plans that cover a wide range of perils. Determine which type best aligns with your risk factors and coverage needs.

3. Research Insurers

Look for insurance companies with strong financial stability and positive customer service records. Utilize online reviews, consumer satisfaction surveys, and financial strength ratings from agencies like A.M. Best, Standard & Poor’s, and Moody’s to gauge the reliability of potential insurers.

4. Compare Quotes

Obtain quotes from multiple insurance companies to compare rates and coverage options. Be sure to provide the same information to each insurer to get comparable quotes. Online comparison tools can streamline this process, but don’t overlook the value of speaking directly with agents for more personalized service.

5. Evaluate Discounts and Deductibles

Inquire about discounts for which you may be eligible, such as bundling policies, installing security systems, or being claim-free. Also, consider how different deductible options affect your premium and choose what best fits your financial situation.

6. Read the Fine Print

Carefully review the details of each policy, paying close attention to exclusions, limits, and conditions. Understanding what is not covered is just as important as knowing what is covered. If anything is unclear, don’t hesitate to ask the insurer for clarification.

7. Consider Additional Coverage

Depending on your location and specific circumstances, you might need additional coverage types, such as flood insurance, earthquake insurance, or riders for high-value personal property. Assess these needs and integrate them into your policy search.

8. Check for Policy Endorsements

Policy endorsements, or riders, can customize your coverage to fit your specific needs. Whether it’s increased coverage for certain valuables or additional protection for specific perils, endorsements can tailor your policy to your lifestyle.

9. Consult with an Independent Agent

If the process feels overwhelming, consider working with an independent insurance agent. They can provide expert guidance, compare policies on your behalf, and help you navigate the complexities of homeowners’ insurance.

10. Review Annually

Your insurance needs can change over time. Make it a habit to review your policy annually and after significant life events, such as a major home renovation or the purchase of expensive personal property, to ensure your coverage remains aligned with your needs.
Choosing the Right Insurance Company - Homeowners Insurance

Choosing the Right Insurance Company

Research and Compile a List of Insurers

Start by gathering a list of potential insurance companies. You can do this by:

  • Asking for recommendations from friends, family, and neighbors.
  • Consulting with an independent insurance agent who can provide options from multiple companies.
  • Using online comparison tools to get a broad view of the market.

Evaluate Financial Stability

An insurance company’s financial stability is crucial—it indicates their ability to pay out claims. Check the financial ratings of potential insurers through rating agencies like A.M. Best, Standard & Poor’s, or Moody’s. Companies with high ratings are generally more reliable.

Consider Company Reputation and Customer Service

Research the company’s reputation for customer service and claims handling. Online reviews, consumer reports, and feedback from current or past customers can provide valuable insights. A company with a reputation for fair and prompt handling of claims should be high on your list.

Compare Coverage Options

Not all homeowners’ insurance policies are created equal. Compare the coverage options from different insurers to ensure you’re getting the protection you need. Pay attention to coverage limits, deductibles, exclusions, and any additional coverages that might be necessary for your situation, such as flood or earthquake insurance.

Look for Discounts and Savings Opportunities

Many insurance companies offer discounts that can significantly lower your premiums. These can include discounts for bundling policies, installing security systems, having a smoke-free home, or maintaining a claim-free record. Make sure to ask each insurer about the discounts they offer and how you can qualify.

Review the Claims Process

The ease of filing a claim and the efficiency of the claims process are critical factors to consider. Inquire about the claims process for each company. A straightforward, transparent claims process with multiple filing options (online, app, phone) is indicative of a customer-centric insurer.

Read Policy Details Carefully

Before making a final decision, carefully read the policy details, including the fine print. Understand your obligations, the insurer’s responsibilities, and any conditions or exclusions that apply. If anything is unclear, don’t hesitate to ask the insurer for clarification.

Consider the Price-to-Value Ratio

While price is an important factor, it shouldn’t be the sole basis for your decision. The cheapest policy might not provide the comprehensive coverage you need. Evaluate the price in relation to the coverage, deductibles, and service quality to determine the best value for your needs.

Check for Licensing

Ensure that any insurer you’re considering is licensed to operate in your state. You can check this through your state’s insurance department. A licensed company adheres to state regulations and contributes to the state’s guarantee fund, which protects policyholders if the insurer fails.

Make an Informed Decision

After thorough research and comparison, choose the insurance company that best meets your needs in terms of coverage, financial stability, customer service, and value. Remember, the right insurer is one that provides the peace of mind you need at a price you can afford, with the service you deserve.

Choosing the right insurance company is a process that requires careful consideration and research. By following these steps, you can find an insurer that offers the coverage you need, with the service and reliability you expect, ensuring your home and belongings are well-protected.

The Final Word

Homeowners insurance is more than a policy—it’s peace of mind in the face of the unexpected. By understanding your coverage options, recognizing what’s not covered, and knowing how to optimize your policy, you can ensure your home, possessions, and financial well-being are protected. Remember, the right homeowners insurance policy isn’t just about safeguarding your physical home—it’s about protecting your way of life.

Frequently Asked Questions About Homeowners’ Insurance

Shopping for homeowner’s insurance can be a complicated process. Even with the information, you may still have a few questions. Well, you’re not alone.

When it comes to homeowners insurance customers, here are the top 10 most frequently asked questions:

1. How Does Homeowners Insurance Actually Work?

Homeowners insurance ensures that the money for extensive repairs won’t have to come out of your pocket. Instead, you’ll be able to file a claim in the event of damage or destruction.

In the event of emergencies or thefts, all you have to do is contact your provider. They’ll help walk you through the claims process. Adjusters work with you to determine your compensation by assessing the damage.

The benefits you’ll get from your provider will depend on several factors. These include:

  1. The limits on your policy
  2. Your deductible before coverage kicks in
  3. Which type of coverage you have

2. What Makes Homeowners Insurance Important?

Homeowner’s insurance isn’t required by the state of Massachusetts. But, if you want a mortgage, most lenders will require a fully insured home.

Having protection for everything from damage to liability coverage is a great way to protect your home. Even if you don’t own your home outright, you’ve still probably put a lot of money into it. Homeowner’s insurance can help you ensure your investment is safe.

3. When’s the Best Time to Get Homeowners Insurance?

If you’re purchasing your home with the help of a mortgage lender, they’ll require you to secure homeowners insurance before closing on your home.

You want to be sure that you have plenty of time to do comprehensive research. Shopping around is the best way to make sure you find the right policy for you.

4. How Much Will Homeowner’s Insurance Cost?

The value of your house and possessions and the amount of coverage you desire are the biggest determining factors for your premium rates. The more valuable, the higher the premium. The other factors mentioned in the guide above will also play a part in determining your rate.

Homeowners’ insurance policies can vary drastically. This means rates can vary drastically, as well. Because of this, rates could be anywhere from $400 to $1600 or more. Additional coverages will increase these costs, but they’ll also provide you with more protection.

5. Is Homeowner’s Insurance Tax Deductible?

Being a homeowner entitles you to other tax benefits. Unfortunately, homeowners insurance is unrelated. Insurance premiums are only tax-deductible in special circumstances.

Landlords and homeowners who use their homes to conduct business may be able to deduct a portion of their insurance policy. Speaking to a tax advisor can help you determine what qualifies you for specific deductions.

6. Does My Mortgage Payment Include Homeowner’s Insurance?

Mortgage payments do not include homeowner’s insurance. The exception is if the house is currently escrowed.

In fact, it is common practice today to create an escrow. Often, these will cover mortgage payments, homeowners insurance, and occasionally even property taxes.

Mortgage payments do usually include mortgage insurance, however. Note that mortgage insurance is not the same as homeowners insurance. Instead, mortgage insurance insures the property in the event that you default on your loan.

7. Can Providers Cancel My Coverage?

Your insurance company does retain the ability to drop you as a client. However, this is different from being “canceled.”

If “dropped” by an insurance company, your insurance will not be renewed. You’ll retain your coverage until your policy expiration date. After that, you’ll need to find a new provider.

If you’re dropped, insurance providers will give you adequate notice. This will allow you plenty of time to find a new provider.

Cancellations, however, can occur at any time as long as you receive notice. Providers must have a specific reason for the cancellation. Reasons could include missed payments, increased risk, or misrepresentation of your situation.

Usually, insurers will provide 10-30 days of notice in the event of a cancellation. However, the amount of notice you receive will generally depend on the reason for the cancellation.

8. How Much Coverage Do I Need?

Your insurance policy should provide enough to cover:

The Structure of Your Home

Your insurance should cover at least the replacement value of your home. This is defined as the cost of building your home from scratch at current rates. Getting an accurate assessment of your home’s value is pivotal.

It’s also important to note that your home’s selling value is not the same as the replacement value. Usually, these will require two separate appraisals from different professionals.

The Contents of Your Home

Your homeowner’s insurance also covers your personal belongings. Most policies cover 50-70% of your home’s value. Again, you’ll need accurate appraisals of the value of your belongings.

Keeping a detailed inventory of your valuables can help you determine if you’ll need to purchase more coverage.

Liability Coverage

Personal injury lawsuits can be costly. This is especially true if you must pay out-of-pocket. While a standard $100,000-$300,000 policy is decent protection, you might want to consider up to $500,000 in coverage to keep yourself protected.

9. How Do I Pay My Homeowners Insurance?

Lots of policyholders pay their insurance companies directly. But you can also pay via escrow in order to tie all your payments together. This allows you to work with one company and usually offers smaller incremental payments.

Talk to your mortgage lender to determine if escrow would be a good idea for you.

10. Where Can I Purchase Homeowners Insurance?

The first step to acquiring homeowners insurance is to assess what you need from your policy accurately. Then, shop around for multiple quotes from reputable insurance providers.

Insurance agents can help you compare policies and companies. When you’re ready to get a quote, reach out to LoPriore to find out how we can help protect your home.

Coverage You Can Count on

Now that you have more information on homeowners insurance, you can make the right decision for your home and your family. If you’re ready to find the best homeowners’ insurance, you need to work with the best companies.

Request a quote from LoPriore to see how we can help you find a cost-effective, comprehensive homeowners insurance policy.

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