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What is home insurance and why do I need it?

Homeowners insurance is a type of insurance that will protect the owner of the property from any damages to the property. The damages may be caused by fire, lightning strikes, windstorms, and hail. You should know not all the damages caused may be covered by insurance, some are not covered like for example earthquakes and floods.

There’s a law that requires one to have an insurance to drive a car and person is not allowed to drive a car without it. But it is not so with home insurance. You do not have to have it, but if you have mortgage on a home, your lender most likely will require you to have insurance on it, to protect the property against fire or natural disasters.

Most policies provide a minimum of $100k of liability insurance. But it is always good idea to get at least $300k to $500k woth of liability insurance coverage. You see with $100k there’s not much you can do in repairs or living out of your home while it is being repaired, so higher amounts of coverage is always good idea.

You should expect to pay around $35 per month for every $100,000 of home value. But it always depends on the city and state you live in. That is why you should always shop around better rate for coverage. You can always ask for annual payment thus saving yourself additional around 12% on the fee versus the monthly payments.

From our research we have found that some insurance companies are simply more cheaper then others. We have compiled a list of few so you can consider:

Amica – Best Customer Rating.
Allstate – Best for New Homeowners.
State Farm – Most Personalized Quote.
Progressive – Extended Endorsements.
MetLife – Best Replacement Coverage.

If the house is not on your name you will not be able to get a homeowners insurance policy but you be able to get Renter’s Insurance for your belongings.

So protect yourself and get Homeowners Insurance Quotes Today. To receive our free newsletter, please sign up here.

Published in Home Insurance

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