Homeowners insurance protects your home against damage caused by fire, windstorms, vandalism, theft, and other events that could cause major property loss. It also covers repairs after an event occurs. Homeowners insurance rates vary depending on coverage and the insurance provider as well as the location of the home.
What Are the Different Types of Homeowners Insurance Policies Available?
There are three main types of homeowners insurance policies available: standard, builder’s risk, and HO-3. Standard policies cover the structure of your house and its contents, while builder’s risk policies only protect the building itself. HO-3 policies provide coverage for both the building and its contents.
How Do I Find an Agent That Will Help Me Choose the Best Policy?
You can find an agent who will help you choose the right policy by asking these questions:
- Does the agent specialize in home insurance? If not, ask whether he or she has any special knowledge or expertise in the area.
- Ask how much experience the agent has writing homeowner’s insurance policies.
- Ask what type of insurance products the agent sells.
What influences average homeowners insurance rates?
There are several different types of homeowners’ insurance policies available. The price of your policy will vary depending on what type of insurance you get. These include:
- Dwelling coverage (also called “Dwelling Only” or “DOB”) covers damage to your property caused by fire, wind, lightning, vandalism, theft, and other perils. It does not cover loss due to earthquake, flood, explosion, landslide, volcanic eruption, or nuclear radiation.
- Landlord’s coverage (also called “Landlord’s Policy”) protects against liability claims made by tenants.
- Personal Property Coverage (PPC) provides protection for items such as furniture, appliances, clothing, jewelry, and electronics.
Can I Save Money by Choosing a Low-Cost Plan?
You might think that choosing a low-cost plan will save money, but there are some things to consider before making that choice. A low-cost plan might not provide enough coverage for your home or personal belongings. If you live in an area prone to natural disasters, you should also check whether your state requires you to purchase additional coverage.
Should I Buy Additional Coverage?
It depends on what kind of coverage you need. In general, homeowners with more expensive homes or who own items worth more than $250,000 should buy extra coverage. This type of coverage protects against damage caused by fire, windstorms, earthquakes, floods, and other events.
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