Home Insurance Coverage -  How To Get Affordable Home Owner Insurance

Do you know which items are covered by your home insurance policy? Learn about what is and isn't covered, and find out where to start looking for affordable home owner insurance.

Understanding your coverage and getting the best rates is essential when it comes to home and family protection. Knowing what's included in a policy can help homeowners save money, avoid unpleasant surprises, and provide peace of mind. That's why we're writing this post on the basics of home insurance coverage so that you can make educated decisions about your protection plan.

First off, let's talk about what home insurance covers. Insurance for a home typically includes:

The value of your home and any improvements you have made to the property – This is known as replacement value, which means that if your house floods and is in need of serious repairs, the insurance company will pay the full cost of replacing it. Replacement value insurance does not cover the cost to rebuild a house that has been destroyed by an earthquake. Other things may be covered by separate policies, which we will talk about later. Such as earthquake coverage.

– This is known as replacement value, which means that if your house floods and is in need of serious repairs, the insurance company will pay the full cost of replacing it. Replacement value insurance does not cover the cost to rebuild a house that has been destroyed by an earthquake. Other things may be covered by separate policies, which we will talk about later. Such as earthquake coverage. Liability – Liability insurance protects you in case one of your family members or a visitor at your home gets hurt, or if you damage someone else's property. You may also want liability coverage for other reasons, like to protect yourself financially if someone sues you over something on your property.

– Liability insurance protects you in case one of your family members or a visitor at your home gets hurt, or if you damage someone else's property. You may also want liability coverage for other reasons, like to protect yourself financially if someone sues you over something on your property. Damage Waiver – This type of insurance covers damage created by a covered peril, such as theft, vandalism, and natural disasters.

– This type of insurance covers damage created by a covered peril, such as theft, vandalism, and natural disasters. Living Expense – It covers living expenses if your home is damaged during the policy period and you need to move because of the loss (not including repairs that might be part of a loss settlement). If the house is destroyed, then it covers expenses to rent a home for a certain period of time.

Let's take a look at the above benefits in more detail.

1. The Value of Your Home and Any Improvements You Have Made To the Property – Replacement value coverage means that your insurance company will pay to either rebuild or repair your home, no matter what kind of damage it has incurred. However, keep in mind that this does not include earthquake damage and other hazards covered by separate policies we'll talk about later on. Here's how it works: You can buy replacement cost insurance for basic items such as appliances, furniture, windows, and carpeting.

Insurance companies will also provide liability coverage for personal possessions, for those items that are considered "incidental" to the home. For example, your jewelry and your family photos are not usually considered incidental items. (Learn more about what is and isn't covered by your insurance policy.)

You may also be able to get additional coverage for expensive electronics and artwork worth more than $500. If you already have homeowner's insurance that covers some of these things, you can allow the additional coverage to be added to that policy. It will probably cost an extra $100 per year, which is barely a dent in the cost of basic replacement value insurance.

2. Liability Protection – This type of coverage is important to protect you against lawsuits related to injuries or damage that occur on your property. Make sure you have at least a standard liability policy that covers other people who might get hurt on your property, such as your guests or visitors who come to your house. If you don't have sufficient liability coverage, and someone sues you for causing them harm, you could be forced to pay out of pocket for legal fees instead of getting a settlement in the suit.

3. Damage Waiver – If you need replacement value coverage for some things but not others, has additional insurance to cover excluded items listed in the policy's "exclusions. You can choose to cover things you don't need and pay for the extra insurance in full, or you can waive the items that aren't part of your normal routine.

The more valuable your property is to you, the higher the amount of coverage you may need. For example, if you live in a high-value home, such as a mansion or a condo, your homeowners policy will likely include:

Coverage for items that are considered "incidental" to the home itself – Your jewelry and personal photos are not usually considered incidental items. (Learn more about what is and isn't covered by your policy.

– Your jewelry and personal photos are not usually considered incidental items. (Learn more about what is and isn't covered by your policy. Liability protection for personal possessions – If this isn't a problem for you, then you will only need basic liability insurance. However, if you have expensive jewelry or artwork worth $500 or more, you may want to consider getting additional coverage from your homeowners insurance company.

4. Living Expense – If your home is destroyed by fire or any other kind of covered peril, then you will be compensated with living expenses coverages that can pay for temporary housing and allow time to find a new home. However, there are some things to keep in mind with this type of coverage: There's no compensation for living expenses if you have already purchased another home. This means that it isn't relevant to those who want to build a new house, but people who have chosen to buy another house and are looking for insurance to help close the deal.

The amount of money you will receive depends on where your home is not the quality of your home. You can get up to $35 per day, up to a total of 25% of the policy maximum limit, which is usually $250,000.

Conclusion – Follow These Tips to Get the Best Homeowners Insurance

When you are looking for homeowners insurance, it pays to shop around. Because premiums vary from one insurance company to another, you can find an affordable policy that will offer your family the protection it needs. You can get a free quote online, or reach out to a local agent for assistance in picking out a policy.

If you need help deciding how much coverage you should get, talk with an agent at your local insurance company or your online insurance broker. They can also help you decide on additional options like living expense coverages and damage waiver coverages that will protect your home and its contents from unexpected issues that arise.