What is homeowners insurance?
Homeowners insurance is protection for your home that covers various situations that may impact your home, such as natural disasters, theft, injuries, home equity, and vandalism and even covers you if you’re liable for injury to another person or damage to their property.
What does homeowners insurance cover?
A regular homeowner’s policy is meant to guard your property from unexpected events. It can help cover damage from:
- Fires or lightning
- Windstorm damage
- Riots or civil upheavals
- Theft or vandalism
- Falling objects
- Weight of ice, snow, or sleet
- Freezing plumbing, HVACs, or other components
How much homeowners insurance do I need?
The amount of home insurance coverage you need depends on a number of factors. But most importantly, you should have enough protection to cover the costs of rebuilding your home and replacing all of your possessions in the event of the unexpected.
Am I required to have homeowners insurance?
No. You can own a home without homeowners insurance, but it isn’t advised. Unexpected events can and do happen, so it’s worth the investment. However, if you finance your home with a mortgage, your lender most likely will require you to insure it. Also keep in mind if you live in a flood zone, your lender may require you to also purchase Flood insurance.
What do I need to consider when choosing homeowners’ insurance?
When figuring out how to choose home insurance, consider these key questions:
- What is the estimated cost to replace, rebuild or repair your home?
- What other structures are on your property (e.g. garage, shed, fences)?
- How much of a deductible can you afford to pay out-of-pocket if you have a loss?
- What are your valuables and what are they worth?
- Do you have frequent visitors to your home?
- Do you work out of your home?
- Do you rent any part of your home or property?
- Do you qualify for any discounts?
- What are the basic coverages required by your mortgage lender?
Can I change the amount of home insurance coverage I have?
Yes, you can adjust your coverage. If you are planning on any home renovations, such as a newly furnished basement or kitchen, your home’s value is likely to increase. You’ll want to make sure you get additional coverage to match your home’s new value.
Does homeowners insurance cover personal injury?
Homeowners insurance covers personal injuries as long as your policy includes personal liability coverage. If someone is hurt at your house or on your property, as a result of an accident or any kind of unintentional mishap, the liability provision of your homeowners’ insurance policy will typically kick in to cover any personal injury claim that is filed.
The only injuries that will be covered are those in which a person is injured as a result of negligence on your part.
Who decides who I purchase my homeowners’ policy from?
You decide. As the homeowner, you get to select the insurer and the coverage that’s right for you, as long as your coverage meets the minimum requirements set by your mortgage company.