Home Maintenance & Repair » Insurance

What Is Homeowners Insurance?

Now that you own a home, you will need to purchase homeowners insurance. Carrying insurance not only helps protect your home from damage and disaster, but it also protects the lender. The home serves as collateral for the loan, so it is important to the lender that the home maintains its value.

Your lender requires you carry at least enough insurance to completely replace the home if it were damaged in a major event such as a fire or tornado. You’ll also want to cover items inside the home, as well as items located on the property, like detached buildings, garages, barns, etc.

An insurance agent can provide you specific policy details and options to help choose the right coverage for you!

Types of Homeowners Insurance

There are many types of insurance policies available. Coverage depends on your insurance company as well as where you live. Most homeowners purchase a policy that covers damage to a home due to things such as:

• Fire
• Lightning
• Windstorms
• Ice
• Snow
• Sleet
• Hail
• Theft
• Vandalism
• Smoke damage
• Things falling on the home such as trees
• Plumbing and heating system damage
• Personal property and liability

Standard policies typically cover at least 80% of the cost of replacing the home. Discuss your options with a qualified insurance agent to make sure you have the right coverage.

You can also add coverage at an additional cost for items that are not included in your policy. These add-on items are called “riders.” Riders can be added for disasters such as flooding and earthquakes, as well as areas of the home that may be used for a home business and houses under construction.