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Homeowners Insurance: Coverage, Costs, and Discounts

Homeowners Insurance: Coverage, Costs, and Discounts

Home insurance comprises of coverage that helps a person to replace or repair the house as well as belongings in case damaged by unforeseen perils like theft and fire. But not all the home insurance plans are one-size-fits-all.

A typical policy may come with specific coverage but it can be customized to meet homeowner’s preferences and unique needs. Homeowner insurance is a financial protection against any kind of loss to your house.

So what do you know about home insurance coverage, costs, and discounts?

Well, a standard home insurance policy provides coverage in four major areas. It provides coverage for the house’s structure, personal belongings, additional living expenses and liability protection.

To explain further:

  • The house itself, including its structure, electrical wiring, plumbing and central HVAC system.
  • Other house structures like fences and sheds.
  • The belongings in your house including appliances, electronics, clothes regardless if they are or aren’t located on the property.
  • Additional expenses like paying for a hotel room when your house is getting fixed.
  • Personal liability coverage like the financial loss if a person gets injured on your property and eventually sue you.
  • Medical payment for individuals who get injured on your property.

How much does a home insurance typically cost?

Speaking in broad terms, you must pay about $30 per month for $100,000 of your house’s value, although it depends on your state and city. Not to mention the cost varies with different insurance companies. If you are living in any kind of risky area such as an area prone to crime, storms or other perils, you should expect to pay more as you will have to add extra coverage to your plan.

One way to save money on your home insurance is to look out for some discounts or bundle up different policies like your car and home insurance policies. Never hesitate to ask your insurance company how you can reduce the rates. In case you have too much coverage, you can raise your deductibles if you have enough money to pay a higher deductible.

What are the home insurance discounts that can save you a good amount of money?

Well, for this you would need to ask the home insurance company for these discounts.

Claims-free discount – For renters and homeowners who have remained claim-free for a particular number of years.

Group discount – For renters and homeowners who belong to an eligible group like a professional association

Mature homeowner’s discount – For homeowners of a certain age. The age bracket varies with the insurance company

Monitored fire alarm discount – For houses having approved monitored fire alarms

Mortgage-free discount – For owners who have paid their mortgage

Multi-policy discount – For renters and homeowners who carry their car and home insurance coverage with the same company

New home discount – For new houses built bylaws or on modern standards

Renewal discount – For owners, maintaining their policies with the same insurance company for a number of years.

Wondering how you can reduce your home insurance? Visit our blog for additional topics or contact us with your questions.

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