Home Buying: Homeowner’s Insurance

Not only is homeowner’s insurance recommended, if you are getting a mortgage, it can also be required. Homeowner’s insurance can protect from any financial loses sustained through storms, fire, theft, or other such events. Some policies will strictly cover the structure of the house, other will cover the house along with any outbuildings (i.e. detached garages and┬ástorage sheds). You can also add coverage for personal property, liability, medical payments, loss of use, earthquakes, and floods.

Homeowner’s insurance can also be pricey. Here are ten tips to hopefully help lower the cost:

  1. Raise the deductible
  2. Bundle policies (homeowners, auto) through the same company
  3. Make home less susceptible to damage
  4. Keep home safer
  5. Be sure to insure the house for the correct amount
  6. Ask about other discounts
  7. Stay with the same insurer
  8. See if you belong to any groups
  9. Review the policy limits and the value of the home and possessions annually
  10. See if there is a government-backed insurance plan

Five Things to Understand About Homeowner’s Insurance

  1. Look for exclusions to coverage
  2. Look for dollar limitations on claims
  3. Understand replacement cost
  4. Understand actual cash value
  5. Understand liability

Home Owner Insurance Other Coverage

While you can purchase a Home Owner’s insurance policy that covers only the structure of your house and any outbuildings, such as detached garage or storage shed, you can also add other coverage

  • Personal property
  • Liability
  • Medical payments
  • Loss of use
  • Earthquake riders
  • Flood riders

Ten Ways to Lower Your Homeowner’s Insurance Costs

  1. Raise your deductable
  2. Buy your homeowner and auto policies from the same company
  3. Make your home less susceptible to damage
  4. Keep your home safer
  5. Be sure you insure your house for the correct amount
  6. Ask about other discounts
  7. Stay with the same insurer
  8. See if you belong to any groups
  9. Review your policy limits and the value of your home and possessions annually
  10. See if there’s a government-backed insurance plan