Your home is probably the most significant investment. However, most homeowners don't do enough to protect their homes from unexpected damage. In fact, most of them only consider protecting their homes when tragedy hits. Fortunately, homeowners can keep their loved ones and valuables safe by getting home insurance.
Home insurance will cover the sudden expenses of repairing or rebuilding your home after a tragic event. Almost all coverage will protect you from windstorm, hail, and fire damage. They also cover theft, water damage, and riots. Above all, it will be vital if a family member, or pet hurts another person on your property. This article will discuss more on home insurance, including what it covers and why homeowners should consider it. You will also learn why homeowners should obtain home insurance.
Benefits of Owning Home Insurance
There are many reasons why every property owner should have home insurance. First off, you don’t have to worry in case of a natural disaster. At least 35 million homes are at a high risk of natural disasters, including storms, winds, earthquakes, inland floods, and wildfires. This means your home might be exposed to peril danger, and you should obtain home insurance to keep what matters most safe.
According to the law of premises liability, you will be held responsible if someone is hurt on your property. Although you can do everything under your power to ensure your property is safe, it still helps to protect yourself with home insurance.
Almost all mortgage lenders expect homeowners to obtain home insurance to protect their investment in case of an unexpected catastrophe. Usually, the lender might expect you to obtain a coverage type that covers the entire home replacement costs.
What Does Home Insurance Cover?
There are different coverages available when it comes to home insurance. Each tend to offer slightly different options. Different coverages include:
- Dwelling - This coverage type will cover the costs of repairing the entire house and other attached structures like your porch. The minimum liability coverage is usually equal to the cost of rebuilding the house.
- Other Structures - This policy covers the repair or replacement costs of additional structures like the fence and shed.
- Personal property - Personal property covers the expenses of replacing or repairing damaged or stolen personal belongings. Usually, homeowners pay around 50% to 70% of dwelling coverage.
- Additional Living Expenses - Homeowners pay about 20% of dwelling coverage to get this policy, and it caters to all your temporary living expenses when the home is under repair.
- Liability Coverage - The policy will come in handy when someone is injured in your property due to neglect. The required minimum liability starts from $100,000.
- Medical Payments - This policy caters to the medical cost when someone is injured in your home by your pet or relative. You will pay around $1,000 to $5,000 for this policy.
Best Home Insurance Providers
When shopping for home insurance, it is essential to consider top providers. You also need to look at the premiums, coverage types, customer satisfaction, and reliability to find the best providers. Below is a list of the best home insurance companies.
- USAA - USAA focuses on veterans, members of the military, and their immediate family members. USAA's home insurance can be found in all states. The company works with ADT to offer discounts on home security systems as well.
- Lemonade - This company offers almost all its services online. Homeowners can file claims or make changes to their policy through their website or mobile application. The company also offers additional coverage without a deductible for jewelry, musical equipment, camera equipment, and other valuable belongings.
- Allstate - This provider offers various coverage options, including scheduled coverage for valuable items and musical instruments, garden, and sports equipment.
- Amica - Amica offers various options like coverage for home business, laptops, and identity theft. The company also offers dividends to all its policyholders.