Real Estate

Home Insurance Cost: Summary of Home Insurance Policies, Coverage, Quotes, and Discounts

Homeowners insurance is a type of insurance policy that protects homeowners against damage and loss caused by hazards such as theft, fire, lawsuits from injured visitors, extreme weather, etc. Your whole life can change in a minute. What if your house suddenly catches fire? Or a once-in-a-lifetime flood or tornado destroying you? You are protected as long as you are smart about the cost of home insurance and the policy you choose.

If you already have homeowners insurance, it’s a good idea to review your policy each year with your financial advisor to make sure you still have enough coverage to meet your needs. You can always add to your policy at any time to reflect changes to your home and property, such as remodeling, renovation, landscape changes, etc.

As with any type of insurance, people take the time to compare prices and get different quotes from various companies and compare what is included and the prices. When considering the cost of home insurance, think about the rebuild price rather than the current value of the home. The materials and construction costs of rebuilding your home will likely cost much more than the current value of the home.

Home insurance cost by type of policy

Where should you start your investigation? Just understand that there are several types of insurance policies, ranging from HO-1 to HO-8. HO-3 is considered by most single family homeowners to be ideal as it is fairly comprehensive and provides coverage for most of the “hazards” they will face, such as burglary, fire, and wind. However, flood and earthquake coverage is generally not included, so you may want to add them if you think you will need them. Even a small stream can turn into a raging river overnight; don’t underestimate the destruction that water can cause.

Some banks will actually require you to obtain flood insurance if you live in the “flood zone” to qualify for a home loan.

How much does home insurance cost? It really depends on factors like the value of the home, where you live, the crime rate, the size of the property, your own credit history, etc. People living in higher risk areas will obviously have to pay more. Generally speaking, homeowners can expect to pay between $ 30 and $ 40 per month for every $ 100,000 of home value. Discounts are available for those who take extra precautions such as fire alarms, sprinklers, security cameras, etc.

The best way to get discounts and low home insurance costs is to visit Lemonade Insurance, where policies start “at $ 25 a month” and claims are paid quickly.

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