Buying a home is one of the biggest investments you’ll ever make. But before you settle in, it’s crucial to protect your new property with the right homeowner’s insurance.
Many homeowners overlook key details in their policies, which can lead to costly surprises later. Don't ever think your home is protected from everything, cause it's not!
In this guide, we’ll cover what homeowner’s insurance includes, what it doesn’t cover, how to save money, and why it’s essential for every homeowner.
What is Homeowner’s Insurance?
Homeowner’s insurance is a policy that protects your home, personal belongings, and finances in case of unexpected events like fires, theft, or natural disasters.
Mortgage lenders typically require it, but even if you own your home outright, it’s still a smart investment for peace of mind. I thought I would never end up making a claim, until I did!
What Does Homeowner’s Insurance Cover?
A standard homeowner’s insurance policy includes:
✅ Dwelling Coverage – Pays to repair or rebuild your home if it’s damaged by covered events like fire, windstorms, or vandalism.
✅ Personal Property Protection – Covers your furniture, electronics, clothing, and valuables if they are damaged or stolen.
✅ Liability Coverage – Helps with legal expenses and medical bills if someone is injured on your property.
✅ Additional Living Expenses (ALE) – Pays for temporary housing and extra costs if your home is unlivable due to a covered disaster.
What Homeowner’s Insurance Doesn’t Cover
Not everything is covered by a standard policy. Here are some common exclusions:
❌ Flood Damage – Requires a separate flood insurance policy.
❌ Earthquakes – Not included; you’ll need additional coverage.
❌ Wear and Tear – Routine maintenance and aging-related repairs are not covered.
❌ Neglect & Pests – Termites, mold due to poor upkeep, and rodent damage are usually excluded.
💡 Tip: Always read the fine print and ask your insurance provider about additional coverage options if you’re in a high-risk area.
Before we move on, I wanted to give a little perspective. Going back to making a claim. The claim we made had to do with a basement flood, a couple of years ago.
How to Save Money on Homeowner’s Insurance
Looking to lower your premiums? Here are some money-saving strategies:
💲 Bundle Policies – Combine home and auto insurance for discounts.
💲 Increase Your Deductible – A higher deductible lowers your premium but means more out-of-pocket costs if you file a claim.
💲 Improve Home Security – Installing burglar alarms, smoke detectors, and deadbolts can qualify you for discounts.
💲 Maintain a Good Credit Score – Many insurers use credit scores to determine rates.
💡 Pro Tip: Shop around and compare quotes from multiple insurance providers to find the best deal. You may have someone who can quote 10,11, 12 companies.
Having that kind of resource is great, but most insurance agents can do that. So it is important to also do your own work and shop around. I currently have three different agents shopping a policy for me. One of them will end up having the best rate and coverage!
Why Homeowner’s Insurance is Essential
Disasters can happen when you least expect them. Without insurance, you could face tens or even hundreds of thousands of dollars in repair and liability costs.
A well-chosen policy ensures that you’re financially protected and can rebuild if necessary. Especially now with home prices as high as they are, you want to be covered!
🏡 Thinking of buying a home? Make sure you choose the right insurance policy! 📌 Subscribe to my blog and never miss a real estate tip!
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