Homeowners Insurance 101
Buying your first home is exciting, but it comes with responsibilities—including protecting your investment with homeowners insurance. Here’s what you need to know.
What Does Homeowners Insurance Cover?
A standard homeowners policy includes several types of coverage:
Dwelling Coverage
Pays to repair or rebuild your home if damaged by covered perils like fire, wind, or hail.
Personal Property Coverage
Covers your belongings—furniture, electronics, clothing—if stolen or damaged.
Liability Coverage
Protects you if someone is injured on your property and sues you.
Additional Living Expenses
Pays for temporary housing if your home is uninhabitable due to a covered loss.
What’s NOT Covered?
Standard policies typically exclude:
- Flood damage (requires separate flood insurance)
- Earthquake damage (requires separate policy or endorsement)
- Normal wear and tear
- Pest infestations
- Neglected maintenance issues
How Much Coverage Do You Need?
Your dwelling coverage should equal the cost to rebuild your home (not the market value). Consider:
- Local construction costs
- Home size and features
- Building code requirements
How to Save on Premiums
- Bundle policies - Combine home and auto for discounts
- Increase your deductible - Higher deductible = lower premium
- Improve home security - Alarms and deadbolts can lower rates
- Maintain good credit - Insurers often use credit-based scores
- Shop around - Compare quotes from multiple insurers
Choosing a Policy
When comparing policies, look beyond just the premium. Consider:
- Coverage limits and deductibles
- Exclusions and limitations
- Company reputation and claims service
- Available discounts
Protect your biggest investment with the right homeowners insurance coverage.
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