Cheap Homeowners Insurance

Homeowners Insurance to Protect Your Property

Cheap Home insurance is the key to assuring that your home and property are protected following an unexpected disaster.

The world of home insurance can be a tricky one to navigate, and Insurance Navy will serve as your information guide as one of the Cheapest homeowners insurance companies, offering you cheapest options for your homeowners policy.

What is Homeowners Insurance?

Homeowners insurance is a policy that protects your home and personal property in the event of a disaster. Coverage extends to the structure of your home and any other additions on the premises, like a shed or garage.

Like renters policies, Standard home insurance policies will protect you if someone gets injured on your property, needs medical attention, and decides to sue.

Homeowners insurance coverage can ultimately be divided into two categories (dwelling and liability), with subcategories (additional living expenses and personal property damage) fully outlining available coverage.

The full extent of what is covered under a policy and the disasters you are protected from are explored in the methodology below.

What Does Homeowners Insurance Cover?

A standard homeowners insurance policy assists you in a variety of ways. While the main focus is on your home and your personal property, policies can also provide liability coverage for things like lawsuits following an injury on your property and additional living expenses accumulated after being displaced.

Personal Property Coverage

Standard home insurance policies cover the personal property kept within your home. This includes electronics, appliances, clothing, decorations, and furniture.

This type of coverage is most common in cases of fire and theft. Your personal property and valuables can also be protected when damaged or lost outside your home.

For example, your policy can provide coverage if some of your personal property is damaged while being stored in a public storage unit. But it would help if you kept in mind that there are limits to how much your policy will cover.

Suppose the value of your personal property exceeds your policies coverage limits. In that case, you will most likely not be able to cover replacement costs strictly with the insurance payout fully.

House And Attached Structures

Home insurance includes what is known as dwelling coverage. Dwelling coverage protects the structure of your house from the perils outlined by your policy. It also covers damage to your home’s features, such as plumbing, cooling systems, and heating.

Your home insurance may also cover other structures residing on your property. These structures may include storage sheds, detached garages, and fences. Protection also covers swimming pools and driveways.

Make sure you note the specifics of your home insurance policy to understand the full extent of coverage of these structures.

Personal Liability and Home Insurance

This liability policy provides financial protection if guests are accidentally injured while on your property. Should the injured party sue, homeowners insurance will offer assistance regarding medical payments and legal fees.

Your liability policy may also apply if you or a family member damage someone else’s property. Injuries surrounding your household pets will also be covered.

Additional Living Expenses (ALE)

Homeowners insurance will help pay for temporary living expenses if your house becomes uninhabitable following a disaster. At the same time, you wait for your home to be repaired.

Also known as loss of use coverage, your policy may pay for expenses associated with being displaced from your house, like the cost of staying in a hotel and food.

What Damage is Not Covered by a Homeowners Insurance Policy?

Your policy may offer you an expansive list of perils it covers you after. However, there are still several threats homeowners insurance won’t be able to help you with.

Sometimes, you have to buy another type of home insurance to be covered, while other times, you have no option but to pay out of pocket.

Listed below are damage types traditionally excluded from the cheapest homeowners insurance coverage.

• Flood damage
• Earthquakes (including landslides and sinkholes)
• Water damage (some types; see policy for more details)
• Mold
• Insect damage
• Rats or bird damage
• Wear and tear (specifics usually outlined in policy)
• Nuclear disasters

If you wish to get better coverage regarding water and other natural disasters, you could look into flood or earthquake insurance.

Some locations are more prone to such accidents than others, and you want to ensure you are fully protected. What is considered to be damage from homeowner neglect (rats, mold, or insects) is not covered under a home policy.

How much does Homeowners Insurance Cost?

It’s hard to give a definitive answer for how much the average cost of home insurance is. Like every other type of policy, premiums are personalized.

Factors unique to you and your living situation will determine the cost of homeowners insurance. Some factors to consider are the location of the home, neighborhood crime rate, the materials used to build your house, and the coverage options you need.

Homeowners in the United States pay average rates of $1,300 per year for home insurance. That comes out to be an average cost of $108 per month. But remember that your rates can easily be above or below this.

Home Insurance is unique because your rates can drastically differ from your neighbor’s house. Remember to save a couple of thousand dollars a year to pay for homeowners insurance.

You should be able to understand better your cost of homeowners insurance by comparing quotes from an array of insurance companies.

How to Get the Cheapest Home Insurance Policy Rate

You can reduce the cost of your affordable homeowners insurance coverage in several ways. Taking even the most straightforward action can reward you with a valuable discount, leading to significant savings.

Listed below are some ways customers can find the cheapest home insurance rates.

Multi-policy discount

Bundling your home insurance with another type of coverage such as auto insurance can get you a discount on your premiums.

When you bundle policies, you put your different insurance types under one company.

As a result of building with your auto policies, insurance companies can offer you discounts and some of the cheapest homeowners insurance rates.

Shop around for Discounts

Finding the best home insurance policy at the best rate for you can be a tedious yet rewarding process. It is highly recommended that you shop around, get insurance quotes, and analyze policies and insurance discounts from various insurers.

Look both nationally and locally. You never know who will offer you the best rate or give the most discounts.

Home modifications discount

You can get the cheapest homeowners insurance rates by installing security systems, safety features, and working to make your home disaster-resistant.

In regards to security, adding security devices such as burglar alarms and deadbolts to your home will make your personal property less vulnerable to theft and vandalism.

Valuables such as Jewelry and Electronics are less likely to be stolen with a solid security system and protective device. These types of security devices will then lower your insurability risk and possibly give you a rate discount.

Making the proper adjustments needed to protect your home can be beneficial to avoid disasters.

For example, suppose you are in an area prone to hurricanes and flooding. In that case, you can hopefully raise your home to avoid water damage.

If you live in an area prone to wildfires, having a smoke detector, fire extinguishers, or a fire suppression system built into the house could lower your rates.

Showing your insurer that you aren’t likely to have large claims because their risks are lower will result in a more significant premium discount in your rates.

Improve your credit score for lower rates

One way to lower premiums and get discounts is by improving your credit score. Many insurers look at a customer’s credit report to understand how financially responsible they are.

Higher credit scores mean a company may consider you lower risk. It may offer you a discount, while bad credit might suggest you neglect your finances and increase your rates.

Adjust your deductible to save money

Deductibles are a feature of many types of insurance, including home insurance. A deductible is a set amount of money you promise to pay when you file a claim.

Setting a higher deductible means your insurance company will have to contribute less; thus, your premiums will be lower. Make sure you can pay for what you promise. Lower premiums may not be worth it if you cannot fulfill this financial liability.

What has been outlined above are just some ways to save on your home insurance premiums and get discounts. For other savings you may not know of, try consulting an agent and asking about discounts you qualify for.

Agents and brokers can be helpful references for any questions or concerns about policy discounts. They can also give insight into homeowners insurance not shared on a company’s site.

Homeowners Insurance Coverage Limits

When it comes to home insurance, coverage limits are fundamental. Coverage limits are the maximum amount of money your insurer will pay out in case of a claim.

With homeowners insurance, you want coverage that exceeds the collective value of your personal property and offers adequate support in the case of a liability problem.

When determining your coverage options, you need to take a long look at your home. To determine how much homeowners coverage you need, you should look at your home’s structure, stand-alone structures on your property, and the value of your personal property.

In case of a claim, a portion of your dwelling coverage is set aside to cover repairing your home and replacing your valuables.

For example, 50%-70% of your dwelling coverage typically covers your personal property. You want to ensure you have a coverage limit that exceeds the value of your home and your personal property. By doing so, you guarantee that you will receive enough payouts to make the proper repairs.

Liability coverage is a separate part of your policy and calls for its coverage limit amount. The average amount ranges from $100,000 to $500,000.

Remember, liability coverage helps pay for court and legal fees if you are sued after someone is injured on your property. You want to ensure you have a reasonable amount of liability coverage in your policy to cover court costs, as they can add up very quickly.

Along with this, you need to consider additional coverage limits for medical payments. Medical payments are part of your policy that pays for the medical costs someone accumulates following being injured on your property.

One person getting hurt in your home can be costly with the hospital bills and legal fees, you may want to look at getting extra coverage like an umbrella policy.

Is Homeowners insurance required by law?

Legally, no. Unlike auto insurance, there are no state laws regarding homeowners insurance.

If you have a loan from a mortgage company, you will be required to obtain homeowners insurance. Before funding your loan, your lender may ask for proof of home insurance.

Failure to prove you have coverage may result in your mortgage lender buying a policy on your behalf and charging you for the cost.

The purpose of home insurance is to make sure all valuable assets are protected. It is recommended that the moment you begin looking at houses, you also start your research into different types of policies.

No matter how safe you think you are, you can never honestly know what is in store for you down the road.

Types of Homeowners Insurance Policies

When shopping for homeowners insurance, you may be met with a few different options in terms of policies.

There are eight types of homeowners insurance policies, each featuring its coverage levels and focuses.

Understanding the pros and cons of the different property insurance is best before settling on one. Some coverages may be more tailored to you than others.

HO-1 Policy

HO-1 is the most basic level of coverage. It typically protects your home from specific natural disasters. The policy lists eleven of them, including fire and hail. An HO-1 policy sometimes covers personal property, but this is not guaranteed.

Liability coverage may also be absent from an HO-1 policy. All that will be covered is the structure of your home. This is the lowest tier coverage you can try to obtain. Due to its limitations, few insurance companies offer an HO-1 policy.

HO-2 Policy

Known as a named peril policy, an HO-2 policy protects your home against various threats, including falling objects and lightning. Only the perils that have been listed are what you are protected from.

You and your property will be vulnerable if you experience a disaster not explicitly outlined in the HO-2 policy. These policies are uncommon, but you can still be recommended.

HO-3 Policy

An HO-3 policy is one of the most common homeowners insurance policies due to its full scale of coverage.

Around sixteen different perils are listed under an HO-3 policy you would be protected from. The perils listed are considered some of the most common, like theft and wind.

Your personal property and land will be protected under what is listed. If you have specific concerns, consulting with your agent can help you understand everything you are protected from.

HO-4 Policy

HO-4 insurance is more commonly known as renters insurance. This policy will cover personal property in a rented home or apartment.

It will not cover any damage to the structure or property the rental resides on. If you rent a home, your landlord’s insurance will cover the home’s structure.

An HO-4 policy is just for your valuables. This is always recommended for anyone renting a space as it provides the necessary protection for their belongings.

HO-5 Policy

An HO-5 policy is much like an HO-3 policy, but its coverage for your home’s structure and personal property is more comprehensive.

Due to its inclusivity, this is a pretty expensive homeowners insurance policy. It is deemed the most comprehensive policy available to homeowners.

This policy may be worth looking into if your home is in a high-risk area. Just make sure it fits into your budget before pursuing it. It may be appealing on paper, but it is hard to keep up with.

HO-6 Policy

HO-6 policies are intended to provide coverage for condo owners and renters living in a shared housing arrangement; it’s commonly called condo insurance.

This type of property insurance is if you own one of these shared living spaces. It is a pretty comprehensive policy with expansive coverage. HO-6 policies will also typically cover the structure of the building, including walls and floors.

HO-7 Policy

An HO-7 policy is similar to an HO-3 policy but specifically covers mobile homes. It offers the same types and levels of coverage as a mobile home.

HO-3 policies do not traditionally cover mobile homes. This plan applies to mobile homes and includes trailers and tiny houses.

HO-8 Policy

This type of property insurance is specifically designed for old homes that require expensive repairs or replacements. These expenses typically cost more than the cash value of the house.

Your home must also be at least 40 years old or older for this policy. Any home younger than that will generally not be covered by an HO-8 policy.

Typically, this policy is intended for landmarks or places with historical significance.

Get a Cheap Homeowners Insurance Quote online

We offer the cheapest rates for home insurance. All you have to do is request a free insurance quote online or call us at 855-949-6289. Our agents will provide personalized service and offer the best possible home insurance quote based on your needs!

Feel free to call us any questions you have about a homeowners policy. Our knowledgeable agents and customer service representatives will help you with any questions about your homeowners policy.

Affordable Homeowners Insurance is only a click away!

Receive a Free Homeowners insurance quote online or call Insurance Navy today at 888-949-6289

Popular Areas we provide Homeowners Insurance

• Homeowners insurance in Illinois

* This product may not be available in every state; please call an agent for more information.