Home Insurance: A Beginner’s Guide to Protecting Your Investment

by | Jan 10, 2024 | Home Insurance | 0 comments

One of the topmost priorities of any homeowner is to protect his or her assets. If you are looking for homeowner insurance, here are some prerequisites you must do to protect your hard-earned money. 

If you want to secure your home, you should consider buying insurance for it. While buying insurance, never consider it a waste of money, as your insurance is not a luxury but a need. 

What is Homeowner Insurance?

If you get insurance for your home, you are investing in the future of your family’s well-being and security. It helps you overcome financial losses in case of earthquake, hurricane, theft, etc. 

In short, it is a designed plan to subdue the losses you and your property may face in uncertain circumstances.

Types of Damages Covered by Home Insurance 

Types of Damages Covered by Home Insurance

There are various conditions where this insurance can easily cover your damages. It includes the interior and exterior portion of your home and your personal assets like furniture, jewellery, etc. It also helps you with liability coverages and provides you with Additional Living Expenses (ALE) if needed. Let’s discuss each of them one by one. 

1. Liability Coverage

Your insurance policy covers liability coverage means if you harm anyone’s property or physically injure them, this will help you through the lawsuit. Thus, the liability coverage covers you legally. It even includes the injury caused by your pets to any individual or property. Your insurer will pay the medical bills and cover the damages too. 

2. Personal Property Insurance

This insurance covers the damages caused to your personal property present inside the house. For instance, your appliances, devices, furniture, etc. 

3. Dwelling Coverage

Dwelling coverage offers protection to the interior and exterior structure of your home. In case of any disaster, your insurer will cover the damages caused to your home building. It also includes the garages, lawns, etc.

Read our new article: How To Get Home Insurance After a Fire?

4. Other Structure Coverage

It reimburses the damages caused to the other structures like fences, sheds, etc.

5. Additional Living Expenses (ALE)

If your home is damaged due to any uncertain weather or it is getting rebuilt, your Additional Living Expenses (ALE) will cover your expenses of temporary living. 

The premiums of your insurance depend upon many factors. Keep reading the article to know them better.

Factors Affecting Insurance Premiums

Factors Affecting Insurance Premiums

If you have historic home insurance or are buying it for your house, here are a few things that can affect the cost of your premiums.

1. Location

Location is one of the most critical factors affecting your home’s premium. In homeowners insurance for historic homes, your insurer will point out the value of the location in your first meeting. 

The rates of your insurance vary, considering the geographical location of your home. If you reside in an area with higher natural disaster risks or increased crime rates, insurance premiums will be higher accordingly. 

2. Conditions of Your Home

Insurance for historic homes is always higher than the new ones because the age of the house matters. In this case, age is not just a number! The newer or upgraded homes may get more discounts on their premiums.

Further, the type of construction, the size of your home, and the material your house is built with are all factors that affect the premium you are going to pay. 

3. Personal History

Your personal insurance history, credit scores, and claim records can also affect the premium and help you get a considerable discount. 

Also, if you have smoke detectors, fire alarms, and other safety measures installed at your house, you will be seen as a responsible and secure citizen and, therefore, can get discounts.

Wrap Up!

Although you cannot predict when you will need financial help, it is ideal to have insurance to help you protect your home. It is essential to know the basics to get a clear view of the package you want to buy.

This is our beginner’s guide to help you with choosing insurance for your home. Further, you can contact us now to connect to an expert to clear up any confusion. 

Patience Noah Insurance is always here to assist you with the most customised insurance plan that can protect your home and make you stress-free at the same time. 

Patience Noah

Patience Noah migrated to the United states in 2003 after the Liberian Civil War. She attended the University of Massachusetts Dartmouth and got her B.A in Marketing. After graduating college in 2013, she started her career in the insurance industry cold calling.

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