Understanding Insurance Policies

Frequently Asked Questions About Homeowners Insurance

18 November 2022

Samantha Reynolds

Everyone has burning questions about home insurance. You want to know what it entails or covers before buying a policy. This article will cover some of the frequently asked questions about home insurance. So, keep reading to get the answers to your questions. At the end of the piece, you'll know much about homeowners insurance. 

How Much Does It Cost?

The cost of a home insurance policy varies depending on your location. That's why you find that Oklahoma, Florida, Texas, and Kansas have expensive home insurance policies. The insurance policies are cheaper in Utah and Oregon. Also, the size of your home will determine the cost of your policy. So, get in touch with your local insurance companies to get estimates.

Are There Any Discounts Available?

Yes, insurance companies have plenty of discounts available. You just need to talk to an insurance agent about the discounts you qualify for. You'll usually be eligible for discounts when you reinforce your home's security. Ensure your home has smoke alarms, sprinkler systems, security systems, deadbolt locks, and storm shutters. You can also get discounts after bundling your homeowners and auto policies.

What Is Covered in the Policy?

Knowing what a homeowners insurance policy covers will help you decide if it's worth the money. In most cases, home insurance policies come with six main coverages. These types of coverages are:

• Loss of use
• Personal property
• Other structures such as a shed, fence, and guesthouse
• Main dwelling
• Personal liability 
• Medical payments 

What's Not Covered?

As you have seen above, homeowners insurance doesn't cover everything. So, don't buy a policy, thinking it will cover damages caused by floods, earthquakes, mudslides, landslides, and sewer backups. So, if your home or personal properties get damaged by these calamities or acts of war, you may need to pay for repairs from your pocket.

Is It Possible to Lower Homeowners Insurance?

Yes. The cost of home insurance isn't always fixed. So, if you want to keep the cost down, you can bundle your home insurance with your auto insurance. By doing so, you'll have lowered the premiums you pay. Alternatively, you can take advantage of various discounts your insurance provider provides.

Is Homeowners Insurance Mandatory?

No. Homeowners insurance isn't mandatory. There's no state law that requires you to invest in home insurance. The only time it's mandatory is when you have a mortgage. Otherwise, buying home insurance is a personal decision. Luckily, having home insurance will always come with plenty of benefits.

Share