Homeowners Insurance 101

Homeowners insurance can help protect your home including the structure, the belongings inside, and the cost of medical expenses if someone is injured on your property. When you purchase a homeowners policy, you are buying “coverages”, which are the things your insurer agrees to pay for.

homeowners insurance

Your deductible, as it is stated in your policy, is the amount you will owe if your home is damaged or you file a claim. For example, if your deductible is $500 and lightning strikes your house, causing $10,000 in damage, you will pay your $500 deductible before your insurance company pays the remaining $9,500.

Unlike health insurance, your homeowners deductible applies for most claims, no matter how many you have per year.

Deductibles for a homeowners insurance policy typically range from $500 to $5,000.

The higher your deductible, the more you will have to pay before your insurance company pays. This means you will have a lower overall rate, but you will pay more out-of-pocket costs. Vice versa, if you have a lower deductible, you will have a higher rate but pay less out-of-pocket.

Though it varies state to state, there are standard coverages that most states offer:

Dwelling coverage includes anything that is attached to your house, such as a garage, chimney, roof, cabinets, flooring, etc.

Other structures that may be covered by your policy include those not attached to your house, such as detached garages, sheds, fences, driveways, etc.

Personal property coverage covers your stuff if it is damaged or stolen. This includes things like your laptop stolen from your car or décor stolen from your front porch. Commonly covered belongings are:

Personal property coverage covers your stuff if it is damaged or stolen. This includes things like your laptop stolen from your car or décor stolen from your front porch. Commonly covered belongings are:

If your home is uninhabitable due to a covered loss, loss of use coverage will pay for a hotel/rent expenses as well as food while you are displaced.

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