Home Insurance Terminology Explained

A Guide To Understanding Homeowners Insurance

As a homeowner, you've likely heard of homeowners insurance, but you might not understand everything it entails. Homeowners insurance is a type of policy that provides coverage for your home and its contents. We understand that the world of insurance policies can be confusing, which is why we've created this guide to help you understand homeowners insurance better. 

What Does Homeowners Insurance Cover?

Homeowners insurance typically covers damage to your home and personal property caused by covered perils like fire, theft, and vandalism. It also includes liability coverage that can protect you in the event that someone is injured on your property. Additionally, the policy may provide living expenses if you are unable to stay in your home due to damage caused by a covered peril. It's important to note that the specific coverage will vary depending on the policy limits you choose.

How Much Homeowners Insurance Do You Need?

The amount of homeowners insurance you need is based on the value of your home and its contents. You'll need enough coverage to rebuild your home and replace your personal property if it's damaged or destroyed by a covered peril. To determine the appropriate amount of coverage, it's best to have a conversation with your insurance agent. You don't want to be underinsured in the event of a loss.

What Isn't Covered by Homeowners Insurance?

Homeowners insurance doesn't cover everything. Certain perils like floods and earthquakes are typically excluded from most policies. If you live in an area prone to these natural disasters, you may need to purchase additional coverage. Additionally, some high-value items like jewelry and artwork may require additional coverage. Reviewing your policy's exclusions and limitations with your agent is the best way to ensure that you have adequate coverage.

How Do You Choose the Right Homeowners Insurance Policy?

Choosing the right homeowners insurance policy can be overwhelming. It's important to shop around and compare quotes from multiple insurance companies. Be sure to understand each policy's specific coverage limits, policy exclusions, and deductibles. You should also consider the company's financial strength and customer service reputation.

How to Lower Your Homeowners Insurance Premiums

You may be able to lower your homeowners insurance premiums by making certain adjustments to your policy. Consider raising your deductible, bundling your homeowners insurance with other policies like car insurance, and installing safety features like smoke detectors and security systems.

Contact a professional to learn more about homeowners insurance