Purchasing and owning a home is considered a milestone achievement in everyone’s life. The amount of investment involved in purchasing and maintaining a home makes protecting it from loss an expensive proposition. Thankfully, homeowners insurance can be taken out on your property, giving you peace of mind that you are protected from many types of loss and will be able to recover.
Homeowners insurance is a broad type of insurance that covers pretty much any type of dwelling where a person lives. There are many different options providing protection from varying types of hazards. The cost of homeowners insurance is determined by the value of the property, the type of coverage, and any additional riders, or insured property, attached to the homeowners insurance. There are other factors, mostly relating to how likely damage appears possible. If your home is closer to a fire station or has hurricane shutters in a hurricane prone area, the cost of getting homeowners insurance decreases.
Unless you plan on buying your house outright, you will need to take out a mortgage. Mortgage lenders always require homeowners insurance, so even if you were trying to get around getting homeowners insurance, you will need it until your home is paid off. Which type of homeowners insurance is taken out is up to the new homeowner and can be adapted to many different situations. Basic homeowners insurance provides coverage from 11 perils that are specifically listed in the homeowners insurance policy. The perils are pretty basic, however they are common sources of damage and include fire, wind and hail damage, vandalism, theft, and other causes of damage. A broader version of homeowners insurance adds an additional 6 perils to the original 11. Like basic homeowners insurance, this expanded homeowners insurance only protects from listed perils. The broadest forms of homeowners insurance name excluded perils instead of protected perils. These homeowners insurance policies are the most comprehensive and most expensive due to the broad range of coverage.
For those that rent property instead of own, there is a form of tenant homeowners insurance that protects personal property with the same amount of coverage as regular homeowners insurance, however it does not need the structural coverage, which should be covered by the building’s owner. Similar to tenant homeowners insurance, condominium homeowners insurance has reduced coverage for the structure but protects the personal property inside like regular homeowners insurance. The last “special case” homeowners insurance available is called “Modified Coverage” homeowners insurance. This type of homeowners insurance is for properties where the replacement value exceeds the market value. This is great for unique properties that are custom designed with one of-a-kind fixtures or older properties where some of the structural features are no longer available or cost prohibitive to produce.
Homeowners insurance is extremely important to protect your property. However, many insurance providers offer homeowners insurance, and finding the best one for you and your property can take a lot of time and effort. Partnering with an independent insurance agency allows you to sit back while your agent does the shopping for you. Through their affiliated insurance providers, independent insurance agencies have the ability to shop around for the best homeowners insurance for you and your property.