What is home insurance exactly? A typical policy will cover repairs or even rebuilding your home if it is damaged by common hazards like fire, lightning, vandalism, etc. If you live near a body of water, you may also be able to get flood coverage. Most home insurance companies will offer coverage that covers medical and legal expenses if someone other than you or a member of your family is injured in your yard or at home.
Some internal items are protected, like your furniture, appliances, walls, and windows, but items like artwork, jewelry, and other collectibles are not covered, at least in a general policy. Generally, you will need to request special coverage for these items. If you have an expensive collection of art, antiques, jewelry, etc. for the one you want coverage for, check and see how each homeowners insurance company covers it by comparing quotes.
Another thing to consider is the cost of local hotel rates, or the cost associated with living with a relative, should your home become uninhabitable for a period of time for whatever reason. Perhaps it is being repaired or even rebuilt. Would coverage on your policy to help you with additional living expenses be worth it if you have to stay somewhere else? Or do you have a relative or a safe place to stay nearby and are sure those expenses won’t add up to much?
The importance of the location of home insurance companies
Location obviously plays a huge role in how much home insurance companies will charge you for your payments. Whether you live in an area vulnerable to many natural disasters is going to be a big factor, whether you like it or not. However, that doesn’t mean you can’t afford it. You may be able to get discounts if your property has some weather resistant features. Even having a sprinkler system and an alarm system setup will go a long way toward saving money.
What does your bank or mortgage lender require? You may only need to have enough coverage to pay the mortgage and not necessarily to repair or replace the home. If you’ve already paid off the mortgage, estimate the cost of the NEWEST materials if your home needs to be rebuilt. Don’t think about how much the property is worth at the moment, think about how much it will cost to rebuild each room and the entire house. If it’s an old house anyway, would it be better to have basic coverage and take the risk?
These are all questions you will have to ask when researching home insurance companies. The best place to start right now is with Lemonade Home Insurance. This company offers a unique and affordable approach to insurance and works with all the major lenders. You can easily get a quote in seconds.
