Homeowners insurance is a type of insurance policy that protects homeowners against damages and losses caused by perils such as theft، fire، lawsuits from visitors who are injured، extreme weather، etc. Your whole life can change in a minute.
What if your house suddenly burns down? Or a once in a lifetime flood or tornado to destroy it? You’ll be protected as long as you’re 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 annually 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، renovations، landscaping changes، etc.
As with any type of insurance، people take the time to shop around and get different quotes from different companies and compare what’s included and the prices.
When considering the cost of home insurance, think about the cost of rebuilding rather than the actual value of the home. The materials and construction costs to rebuild your home will likely cost much more than the home’s actual value.
Cost of home insurance by policy type:
Where should you start with your search? Just understand that there are a number of different types of insurance policies، ranging from an HO 1 to an HO 8. Most single family home owners find the HO-3 ideal, as it is fairly comprehensive and provides coverage for most of the “perils” they will face، such as theft، fire and wind.
However، flood and earthquake coverage are usually not included, so you may want to add them if you think you’ll need them. Even a small stream can become a raging river overnight don’t underestimate the havoc that water can wreak.
Some banks will actually require you to get flood insurance if you live in a “flood zone” in order to qualify for a home loan.
How much does home insurance cost? It really depends on factors such as the value of the home, where you live، the crime rate، the size of the property, your credit history, and so on.
People in the most dangerous areas will have to pay more. In broad terms, homeowners can expect to pay between $35 – $45 per month for every $101,000 of home value. There are discounts available for those who take extra precautions, such as getting fire alarms، sprinklers، security cameras، etc.
The best way to get low cost home insurance and discounts is by visiting Lemonade Insurance، where policies start at “$26 a month” and claims are paid quickly.