Your home is your biggest investment. Compare homeowners insurance from top-rated companies and make sure it is actually protected.
What Is Homeowners Insurance
Homeowners insurance is a form of property insurance that covers losses and damages to an individual's house and assets in the home. It also provides liability coverage against accidents in the home or on the property. A standard homeowners insurance policy covers damage to your home's structure, loss or damage of personal belongings, liability protection, and additional living expenses if you need to temporarily relocate after a covered loss.
What Does Home Insurance Cover
Standard homeowners insurance covers your dwelling, other structures on your property, personal property, loss of use, personal liability, and medical payments to others. It covers damage from fire, lightning, windstorms, hail, explosions, vandalism, and theft. Critical exclusions include flood damage which requires a separate NFIP policy, earthquake damage which requires a separate endorsement, normal wear and tear, and intentional damage.
How Much Coverage You Need
Your dwelling coverage should be enough to rebuild your home from scratch at replacement cost value not its market value. Replacement cost is typically 10 to 25 percent higher than market value. For personal property most policies cover 50 to 70 percent of your dwelling coverage. Liability coverage should be at least $300,000. If your net worth exceeds your policy limits consider an umbrella policy for additional protection.
Discounts Available
Homeowners can save significantly by bundling auto and home insurance for 10 to 25 percent off, installing home security systems for 5 to 20 percent savings, having a new or recently renovated home for 10 to 30 percent off, installing an impact-resistant roof for up to 20 percent savings, and maintaining a claims-free record for 3 or more years.