Getting the house of your dreams requires hard work and dedication due to which it becomes essential to protect it by purchasing a homeowners insurance policy.
It is crucial to have a sense of safety for your huge lifetime investment and valuable assets within. You can feel secure with affordable insurance policies offered by Insurance Navy to suit your specific needs.
Insurance Navy shares your stress of selecting the most appropriate homeowners insurance by comparing prices and other benefits among various home insurance providers. Insurance Navy offers the best-in-class homeowners insurance through value-added services, superior quality products and an easy and quick claim settlement process.
You can opt for affordable homeowners insurance policies offering a customized experience for all clients. Insurance Navy’s expert agents cater to all your personalized needs and specific coverage requirements.
Why do you need homeowners insurance?
A homeowners insurance policy is suitable for anyone who owns a house, to protect your most valuable investment. Most mortgage lenders also require homeowners insurance. You will need separate coverage to protect your home and personal belongings against damage and losses caused by floods or earthquakes. If any mishap occurs, homeowners insurance can help you restore your life to normal without being heavy on your pocket.
If any damages occur to your house and belongings or someone is injured on your property, homeowners insurance can help cover repair costs or replacements, temporary housing needs and other types of expenses incurred.
Types of homeowners insurance coverage
Most homeowners insurance covers the basic losses and damages to the property, but you can select the coverage that best suits your requirements and budget. You may be asking yourself, How Much Homeowner Insurance Do I Need? A typical homeowners policy has seven coverage parts:
Dwelling (Coverage A)
Dwelling coverage can help you pay for damages to your house by a covered cause of loss. Other than repair cost policies, a loss or damage to an insured dwelling is usually settled on a replacement cost basis. Policies typically cover damages due to fire, wind or hail unless specifically excluded.
Appurtenant Structures (Coverage B)
Other structures on the property that are not attached to your house, such as a detached garage, tool shed, fences, barn or a swimming pool, are typically covered in the homeowners policy for up to 10% of the dwelling amount without any extra premium charges.
Personal Property (Coverage C)
Personal property covers damages and losses to your personal belongings such as furniture, appliances, clothes and other goods. Many homeowners insurance companies offer replacement costs coverage on private property and belongings for an additional premium amount. Limited coverage for special items such as cash, jewelry, computers and collectibles can also be offered depending on the policy type.
Additional Living Expenses (Coverage D)
Additional living expenses include the expenses incurred by the homeowners while living away from their house. Expenses settled under this coverage consist of hotel/apartment bills, lost rent amount (for rented out parts) and restaurant bills.
Liability (Coverage E)
This coverage offers protection from third-party liabilities. You are covered against claims filed by someone and your legal liability to pay someone for damaging their property or if the person suffers some bodily injury on your property.
Medical Payments (Coverage F)
This coverage offers immediate medical care bills such as ambulance expenses and first aid for minor injuries to someone hurt on your property. The claim amount may vary depending on the homeowners insurance providers.
Property of Others (Coverage G)
Additional insurance inclusions
Some extra coverage may be available at an additional charge and can be purchased to enhance your overall homeowners insurance coverage. These may include:
- Additional replacement costs
- Tree removal
- Debris removal
- Fire department service charges
- Ordinance and legal charges
- Credit card and other fraudulent money transfer charges
- Personal property endorsements
- Water damage and sump pump overflow
- Flood insurance
General Homeowners Insurance Exclusions
A typical homeowners policy may not cover some damages or losses. These are :
- Damages due to natural and other causes such as earthquakes, floods, mudslides, nuclear hazards, deterioration and birds or insects are not covered in the home insurance.
- Vehicle insurance is not covered under home insurance. Therefore, the maintenance and operation charges of an aircraft, motor vehicle or watercraft are not covered.
- Any intentional damage to the insured property and any loss caused due to sheer negligence of the owner are not covered.
- Damages to appliances or other belongings due to power failure are also not covered under the homeowners insurance.
Factors affecting homeowners premium rates
There are a variety of factors that can positively or negatively affect your homeowners insurance premium rates. Homeowners insurance companies use various factors to determine the accurate premium rate. These factors may include:
- Amount of coverage: A higher amount of insurance coverage will increase the premium amount for the homeowners policy for protecting your house, property and other belongings.
- Condition and age of the house: The premium for an older house is usually more than a newly-built house that is in a good condition.
- Claim history: The claim history includes the type and number of claims filed by you. Analyzing the claims filed helps the insurance companies to determine the premium rate.
- Type of structure and construction materials: A lower premium rate is usually offered for strongly built houses with brick or masonry.
- Location of the house: The home insurance companies segregate the states into rating territories. It helps them to set higher premiums for areas with a higher crime rate or high storm activity.
- The cost of rebuilding: If your house is destroyed or damaged then your homeowners policy will pay to rebuild it at current construction costs depending on the policy limit. This cost is different from the purchase price of your house that includes the cost of the land.
Ways to reduce your homeowners premium:
To ensure you purchase an affordable insurance policy you can opt for discounts offered by the insurer. Some of the most common discounts offered are:
Multi-policy discounts if you opt for more than one type of insurance from the insurer. New home discount for newly constructed houses. Claim free discounts if you don’t have a recent home insurance claim. Protective devices discount for installing fire extinguishers, smoke detectors and burglar alarms. Paid in full discounts for full premium payment in one go.
Your home is your safe place and protecting it is your duty. Get a Free Quote now either online or by visiting one of our convenient locations.