What Is Homeowners Insurance?

Homeowners insurance provides coverage for your private home and covers you in the event of a loss/damage to your home. If your home is burglarized or is partially or totally destroyed by a cause that is covered by your policy, homeowner’s insurance will help you replace your belongings, repair your home, or even rebuild.

 Homeowners insurance also provides liability coverage which protects you if someone is injured on your property or you are deemed responsible for personal injury or property damage through negligence. 

If you’re insured, you can file a claim to pay for the damage and help rebuild your dreams. Your homeowner’s insurance will also cover theft of your personal belongings, including when you take them with you in your car or while you travel.

Amba Insurance can help you to determine the amount of coverage that makes the most sense for your home and personal coverage needs.

What Does Homeowners Insurance Cover?

Homeowners insurance provides for:

Property damage: This includes damage/destruction to your residence and/or detached structures. Compensation, up to the limits of your policy, will be paid out in the event of damage or loss incurred. Be sure to check your homeowner’s policy to see what is covered and what is excluded.

Personal property loss: Includes damage or theft of personal property, up to your set policy limits for covered circumstances. In the event your personal property is very valuable (such as collectibles or antiques) you’ll require additional “riders” on your policy.

Personal liability: If you, your family member, or even your pet causes an accident, injury or property damage, your homeowner’s insurance can protect you. You will normally have coverage up to your liability limits for property damage or medical bills. There are exclusions, so it is important to fully understand your liability coverage and coverage limits.

Added living costs: If your house is uninhabitable, your homeowner’s insurance can pay for alternative living arrangements while your home is repaired or rebuilt. You will typically have daily and total overall limits for this coverage.

Is Homeowners Insurance Required?

Your state may or may not require homeowner’s insurance, but mortgage lenders usually will require coverage. Even if you own your home it’s still a good idea to protect your investment with an insurance policy. 

That way you can get the financial compensation you need to repair or rebuild after a loss. Not only that, but your home coverage can help to protect you financially in the event of a liability claim that leads to a lawsuit.

How Much Does Homeowners Insurance Cost?

The value of your home and the amount of coverage you buy will determine the amount you will pay for your premiums. But there are other factors that can affect your premium as well, including things like the crime rate in your area, and how many claims you have filed in the past.

A typical annual premium can range anywhere from $400 to $1500, or more for a high value home. If you choose additional coverage, you will pay a higher premium, but you will also have better protection.

It’s always important to shop for the best rates and value. Amba Insurance can compare prices from several different insurance companies to find the right policy for you.

How Much Homeowners Insurance Do I Need?

Make sure your homeowners insurance covers the following areas:

Structure of home: Insure your home for its full replacement value. This is how much it would cost to rebuild your home. The amount it would cost to sell your house is not a good indicator of the replacement value. 

Personal belongings: Most policies cover your personal belongings at 50 to 70 percent of your home’s value. This may not be enough coverage if you have many valuable items. For antiques or high value items, you may need to purchase an additional “rider” that can provide more complete coverage.

Liability: A basic policy might include $100,000 to $300,000 of liability coverage.  However, personal injury lawsuits are expensive, you may want to purchase liability insurance with higher $300,000 to $500,000 limits.

For additional protection and peace of mind, consider buying an umbrella liability policy, which can add another $1 million or more in liability coverage.

An umbrella policy is an excellent way for anyone to increase liability protection, but it's an especially good idea for anyone with particular liability concerns.

How Is Homeowners Insurance Paid?

You can always pay the insurance company directly for your homeowners’ policy, or your mortgage company may allow escrow, which allows you to pay your homeowners insurance payment along with your mortgage payment. This allows you to break your insurance premiums into smaller payments.

Where Can I Get Homeowners Insurance?

When you start your search for homeowner’s insurance, it’s important to assess your needs to determine the right amount of coverage. It can be tempting to choose a policy based on price alone, but you probably won’t get the right amount of protection using that method.

Protecting your investment doesn’t mean breaking the bank. You can get a range of quotes and options us.

When you work with an independent agent like Amba Insurance, you’ll never have to wonder if you should have looked at more policies from different companies. You will have the opportunity to compare several options from top companies and find the best policy and value for your needs, all while letting your agent do the legwork.