What is homeowners insurance?
Homeowners insurance is a type of property insurance covers damage to your home, loss of personal belongings and other items in your home.
Some homeowners insurance policies will also cover living expenses, while others will pay for medicals bills for people injured in your home.
How does home insurance work?
The way that home insurance works is you sign up for a homeowners insurance policy and in exchange your insurer will cover your home from a variety of damage types. The level of coverage which you receive will depend on the policy which you pick.
If you suffer damage property, or if you have personal belongings taken from you, then you can file a claim with your home insurance provider. If the claim is accepted, you will receive a payout which you can use to recoup your losses.
What does home insurance cover?
Your home insurance coverage level will depend on the specific policy which you choose. Typically, a home insurance policy will insure damages to the structure of your home and your personal belongings in the event of a disaster.
On top of this, home insurance policies can cover liability damages. This means that if someone injures themselves in your home, then your insurance policy may be able to cover their medical bills.
Home insurance differs slightly for mobile homes. Check out our guides below to find the best mobile home insurance in your area:
What doesn’t it cover?
Homeowners insurance covers a wide range of disasters and and damages to your home. However, there are exceptional circumstances which a home insurance policy will not cover.
In these circumstances, if you want protection, you will need to take out an additional policy. For example, flood insurance and earthquake insurance are both necessary policies if you want to protect your home from damage caused by floods or earthquakes.
Home insurance providers also won’t cover any accidents which are caused by negligence. This means that if a claim could’ve been prevented from proper home maintenance, then your insurance company is unlikely to pay out the claim.
How Much Does Homeowners Insurance Cost?
The cost of your home insurance will depend on a variety of factors; such as where you live, how much coverage you opt for, wat optional extras you include on your policy. The value of your home should also impact your rates, as the cost of insurance will differ for a home with a value of $150k and a home with a value $1million.
How to save money on home insurance
You can find many home insurance discounts by shopping around. When you’re shopping around for a homeowners insurance quote, be sure to check if you’re eligible for any discounts.