What is Homeowners Insurance?
Homeowners insurance, also known as hazard insurance, is a type of insurance that protects your home and belongings from damage or loss due to fire, theft, vandalism, and other covered perils. It also provides liability coverage in case someone is injured on your property and sues you.
Why Do You Need Homeowners Insurance?
Even if you think you don’t have much worth protecting, you should still consider getting homeowners insurance. The cost of replacing all of your belongings can be surprisingly high, and homeowners insurance can help you cover those costs. In addition, liability coverage can protect you from financial ruin if someone is injured on your property and sues you.
What Does Homeowners Insurance Cover?
Homeowners insurance typically covers the following:
- Dwelling: This covers the structure of your home, including the roof, walls, and foundation.
- Personal property: This covers your belongings, such as furniture, clothing, electronics, and appliances.
- Liability: This covers you if someone is injured on your property and sues you.
- Additional living expenses: This covers the cost of living in a hotel or other temporary accommodation if your rental unit becomes uninhabitable due to a covered peril.
How Much Does Homeowners Insurance Cost?
The cost of homeowners insurance will vary depending on a number of factors, including the value of your home, your location, your claims history, and your deductible. However, you can typically expect to pay between $100 and $200 per month for homeowners insurance.
How to Get Homeowners Insurance
You can get homeowners insurance from most insurance companies. You can also compare quotes online from multiple companies.
Tips for Saving Money on Homeowners Insurance
- Shop around for quotes: Don’t just go with the first company you find. Get quotes from multiple companies to compare rates.
- Increase your deductible: The higher your deductible, the lower your premium will be. However, make sure you can afford to pay your deductible if you need to file a claim.
- Bundle your policies: If you have other insurance policies, such as car insurance, you may be able to save money by bundling them together.
- Take advantage of discounts: Many insurance companies offer discounts for things like having a security system or being a member of certain organizations.
- Make your home more resistant to damage: You may be able to get a lower premium by making your home more resistant to damage from fire, theft, and other perils. This could include things like installing a fire alarm system, deadbolt locks, and a security system.