Home Insurance

What Does Homeowners Insurance Cover?

Homeowners insurance provides coverage for a variety of risks that you may face as a homeowner. It helps to cover the expenses that otherwise may be financially hard to cover on your own. These might include:

  • Property Insurance,
  • Personal property loss,
  • Personal liability,
  • Added living costs.

Is Homeowners Insurance Required?

Your state may or may not require homeowners insurance, but your mortgage lender typically will require coverage to provide a home loan. Nevertheless, even if you’re not required to buy homeowners insurance, it’s still a good idea to protect your investment with an insurance policy in case it is being damaged.

How Much Does Homeowners Insurance Cost?

The value of your home and the amount of coverage you buy will largely dictate the amount you will pay for your premiums. However, there are also other factors that affect your premium such as the crime rate in your area, how many claims you have filed in the past or even the state you live in. Taking into consideration that there are so many factors affecting the cost of homeowners insurance, a typical annual premium can range anywhere from $400 to $1500, or more for a high-value home.

How Does Home Insurance Work?

When you buy home insurance; in essence, you buy a safety net for your home. In other words, if your home gets damaged or destroyed, you can file a claim to pay for the damages and help rebuild your home which otherwise would cost you thousands or even hundreds thousands of dollars.

What’s contents insurance?

Contents insurance covers your personal possessions against accidents such as theft and loss. The coverage includes furniture, clothes, fridge, carpets, jewelry and other things that might fall, move in case of an accident.

What’s buildings insurance?

Buildings insurance protects the structure of your home and everything that stays put such as fitted kitchens and sanitary ware. Essentially, it protects the fabric of your home against weather damage, fire, water leakage and vandalism.

Why do I need to know the Rebuild Cost of my Home?

You need to know your home’s rebuild cost when purchasing buildings insurance, and this amount will decide how much coverage you need to ensure your property. There are two main ways to find your home’s rebuild cost: hire a surveyor or use a rebuild calculator.

How does the rebuild cost of my home being calculated?

The rebuild value of your home typically differs from its market value. It’s mainly because of factors such as the land, location, supply and demand are taken into account. Rebuilding takes into consideration the price of labor and materials that would be involved in building a house identical to yours on the land you own.

If you have other questions about home insurance, feel free to contact us.