Getting a reasonably priced quote can seem like it's out of reach to some people, but the truth is, obtaining one takes just minutes and could save thousands. Luckily for you, homeowners insurance is relatively easy to get - and you can get a free estimate on Coverage Haven!
Homeowners insurance is a type of property and casualty insurance that covers the buildings and other structures on your property, as well as certain household items inside. It also provides coverage for liability claims made against you by others, such as medical expenses or injury to someone on your property. The cost varies based on how much coverage you need and where you live in the United States.
Home insurance is a necessity for any homeowner. There are many different types of policies to choose from, but it's important to know the difference so you can make an educated decision when choosing which one will best suit your needs and budget. The more coverage you want on your homeowner's policy, the higher cost of the premiums:
This basic property insurance coverage only provides coverage for ten named perils. Many states prohibit the sale of HO-1 policies, and few insurance providers offer them.
An HO-2 policy is also known as the broad form and offers more coverage than an HO-1 but less coverage than an HO3. Like a basic named perils policy, this type of insurance covers specific damages listed and nothing else. Personal property is covered under actual cash value.
This is the most common type of home insurance intended for single-family homes, multi-family homes, and townhouses; however, the property owner must live in the house and not rent. This policy provides "all-risks" (or open perils) coverage for the dwelling and coverage against the previously named perils for personal property except for specific acts named within the plan.
This policy is commonly known as renters insurance. This policy does not include any coverage for the structure itself, but personal property, liability, additional living expenses, and other options are covered.
This is similar to an HO-3 but offers a broader range of coverage. The dwelling and personal property are covered with replacement cost and have all-risks coverage. This policy is utilized for expensive homes and expands the standard coverage to include furs, fine arts, and jewelry.
Condo insurance, also known as HO-6 coverage, is designed for people who live in a condominium or co-op. The amount of condo policy you'll need will vary depending on what the HOA covers with their policies.
Mobile home insurance is virtually an HO-3 policy, but it's designed specifically for mobile homes. This type of coverage offers protection from fire and theft and average coverages in most homeowner policies like liability or personal property damage.
With HO-8 homeowners insurance, you can get coverage for your home if it doesn't meet the insurer standards required in most types of homeowner's insurance.
Homeowners' coverage is essential protection for homeowners in the event of disasters, theft, and accidents. A typical policy includes four coverage types:
The average cost of a homeowner's insurance premium in the U.S. is $1,015 a year. According to the most recent release by the National Association of Insurance Commissioners (NAIC), the average annual premiums for the most popular policy (HO-3) are:
A free quote from Coverage Haven is your best first step to finding out the cost of insurance. The price you're quoted will depend on several factors, including:
Older homes are usually more costly to insure.
If you renovate your kitchen and dining room, be prepared to pay more on home insurance. This is because the renovations will make your place more valuable and cost more in repairs if damages occur.
If you're living in a higher-crime area, your insurance rates are likely to be more expensive because of the possibility of theft or vandalism. Natural disasters and flooding can lead to increased premiums as well due to their frequency in these areas. However, your location could also lower your rates if it is near fire hydrants, police precincts, or other safety facilities.
The insurance company evaluates you based on your past claims, credit rating, and work history. If you file multiple claims or work from home, these factors can either increase or decrease your policy cost.
Insurers will also consider how much the construction rates are in your region in the chance that you will need to rebuild your home.
You can save on home insurance costs by keeping your house well-equipped with a smoke alarm and security system linked to the local police department. Many insurers will reward you for these features, which means less money spent out of pocket!
Naturally, the size of your home plays a role in the cost of your insurance. The larger a home is, the more expensive it would be to rebuild in the event of a disaster.
Many breeds can be classified as "aggressive" by some companies, such as Dobermans or Pitbulls, which can affect the cost of your policy.
If your home has high-risk amenities such as wood-burning stoves, trampolines, or pools, your rates are likely to increase. What you own also plays into this - for example, if you own expensive jewelry or high-end electronics, it's wise to add a rider or endorsement to cover these items at an additional cost.
Brick homes are more durable than wood-frame houses that are easily damaged by fire. Homes built with brick will cost less to insure because of their durability and resistance to fires.
It's always in your best interest to keep premiums low. But, what do you have control over? The cheapest way is by shopping around for coverage and comparing rates on Coverage Haven, but there are other ways you can lower your home insurance costs:
To make sure you're prepared for the homeowner's insurance shopping experience, consider the following:
There's no one-size-fits-all when it comes to choosing the best homeowners insurance company. When comparing possible insurers, it's essential to do your research to ensure the money you pay each month will ensure you're covered if disaster strikes:
Home warranties and insurance are often confused, but they serve two very different purposes. Homeowners insurance protects against events like fire or theft that occur in a home, while the warranty is intended to cover appliances as well as any other parts of your house for up to 10 years after purchase if something breaks down due to normal wear-and-tear.
Your homeowner's insurance policy doesn't guarantee mold coverage. Mold damage is only covered if it's connected to a covered peril, such as water damage. Still, you can buy flood insurance for more general protection from mold-related issues like flooding.
While there isn't really a homeowner's insurance rule of thumb, Insurance companies adhere to the 80% rule for homeowner's or property owner's insurance policies to be eligible. The standard means that an insurer will only cover the cost of damage if a homeowner has purchased a policy equal to at least 80% of the house's total replacement value.
Generally, homeowners insurance is not tax-deductible. As a result, you are unable to itemize any payments for home insurance on your taxes. This means that even though the premiums may be included in your mortgage payment each month, they will not show up as an official deduction when it comes time to file your return—even if fire or theft happens in between these monthly installments.