Understanding Home Owners Insurance: Types of Coverage You Need

Having home owners insurance is an important part of protecting your large investment in your house, and minimizing risk. But what kind of coverage do you need, and how do you go about getting the right type of coverage? 

Home owners insurance provides coverage against risks such as damage done to the physical structure of the house, liabilities associated with accidents and damage made to your property or that of your neighbors, and renters or owners of the house who need to be financially protected from losses caused by theft and other events. 

In this post, we will review the different types of coverage you need for your home owners insurance, the costs associated with each type, and some tips on how you can save money on your policy. 

What’s Covered by Home Owners Insurance? 

Home owners insurance policies generally cover the following: 

• Structural damage – This covers damage done to the physical structure of your house. This can include lightning strikes, fire, wind, hail, and some other natural disasters. Structural damage coverage also protects from vandalism and theft.

• Liability – Liability coverage protects you in the event that you, or someone in your family, is found responsible for an accident or injury that causes damage to another person or property. It can also include compensation for lost wages, medical costs, and legal fees if you are sued. 

• Contents insurance – Contents insurance provides coverage for personal items in your home such as furniture, electronics, clothing, and jewelry that may be stolen or damaged.

• Loss of use – Loss of use coverage provides reimbursement for living expenses that occur when your house must be repaired. For example, if there's a fire that damages your house and you have to stay in a hotel while it is being repaired, loss of use coverage can provide some compensation for these expenses.

• Extra coverage – You can also opt to get extra coverage for certain items, such as valuable items, or for special events that increase your risk of theft or damage. 

What Does Home Owners Insurance Cost? 

The cost of home owners insurance varies greatly depending on the size of your home, location, and the type and amount of coverage you select. It may also be affected by your home’s age, construction type, and any special features. 

The amount you pay for home owners insurance also depends on the level of deductible you select. A higher deductible usually results in a lower annual premium. However, keep in mind that a high deductible can be risky because if you have to file a claim, you will be responsible for a large portion of the cost. 

Ways to Save on Home Owners Insurance 

There are several ways you can save money on your home owners insurance. First, shop around and compare different policy offerings and rates to get the best deal. It can also help to look for discounts, such as those offered for having a security system or for installing safety features, like smoke detectors. 

Additionally, paying your premium in full, or at least a large portion of it, can often get you a discounted rate. You can also sometimes get a lower rate by bundling home owners insurance with other policies, such as auto insurance. 

Get the Right Home Owners Insurance 

Having the right home owners insurance is essential to protecting one of your biggest investments. Knowing the types of coverage available and understanding your needs can help you make the best decision. Review your policy periodically to make sure it is up to date and still provides you with the needed protection. 

If you are looking for an insurance agent to help you with the selection and purchase of your home owners insurance policy, contact Edison Insurance Services. We will help you find the right policy and coverage at the best rate.