Homeowners insurance is a must-have to ensure your home and assets are protected. Whether any losses or damage you incur are weather-related or from theft, you can be sure you’re covered.

Be sure to contact your homeowners insurance company with specific coverage questions regarding your policy.

Q: What is homeowners insurance? 

A: Homeowners insurance provides coverage for your home and compensates you for any damages or home losses. In case of a burglary or if your home is partially or entirely damaged by a cause that is insured by your homeowners insurance policy, the company will assist you with the replacement of your household belongings, repair your home or event rebuild.

There is an add-on coverage that you can choose to have on your policy, liability coverage. This protects you, the homeowner, in the event that someone is injured or hurt on your property. In addition, it can help you in most cases where there is property damage through negligence. As always, the amount that is compensated depends on the limits set on your policy that you are paying for.

Q: Should I get homeowners insurance before I close on a mortgage?

A: Yes. You purchase homeowners insurance before closing on a mortgage for a new home or condo. 

It is important to compare homeowners insurance quotes to get the best coverage. Every homeowner has unique needs. 

Q: Am I required to have homeowners insurance?

A: Typically, yes. In fact, most mortgage lenders will approve your loan only if your home is insured. 

Even if homeowners insurance isn’t required in your state, it’s the best way to ensure your home and assets are protected. Purchasing a home is one of the biggest investments you will make, don’t risk losing it.

Q: What does homeowners insurance cover?

A: Homeowners insurance covers you in three main areas. 

Property damage. This includes coverage from destruction to your home or any detachment from the structures, such as a storage shed. Typically, damage from natural disasters including hurricanes, tornadoes, earthquakes or floods is excluded. Check the exclusions on your personal homeowners insurance policy. 

Personal property. This includes any damages or acts of theft of your personal property. If you happen to have other valuables such as antiques or collectibles that are not included in your policy as special endorsements, they may not be covered. In the standard limits, it is usually an add-on for the valuables you’d like to be compensated for in case of theft or damage.

Personal liability. This includes protection against any accident, injury or property damage caused by you, a family member or even your pet while in your home. The damage can include anything from medical care to repair of personal property, it is generally covered up to your liability coverage. In the event of any unwanted lawsuit, you want to make sure with your insurance company that you have enough protection and adequate limits that shelters your finances. 

Q: How much does homeowners insurance cost?

A: Your home’s value and the amount of coverage you choose will ultimately determine your premium for the year. Insurance companies also take into consideration the crime rate in your area as well as your past claims to determine your rate. 

There are quite a few factors that come into play when your home insurance company quotes you, but a typical annual premium can be range from $400 to $1500. Compare homeowners insurance online to get the best rate.

home security system

Q: How can I lower my premium?

A: Homeowners insurance doesn’t have to be expensive. Here are tips to lower your annual premium. 

Install a security system in your home.

Don’t smoke in your home.

Install smoke detectors and a sprinkler system.

Ask your insurance company about bundling your home and auto insurance.

Q: Can an insurance company cancel my homeowners insurance policy?

A: Yes, it is possible for your insurer to cancel your homeowners insurance. Reasons may include:

Unpaid premium

An increase of hazard by the homeowner (i.e. illegal storage of fireworks, not fixing a gas leak)

Vandalism or damages due to the property being vacant for more than 60 consecutive days

Material misrepresentation