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Questions and Answers
What type of structures may need separate coverage in a homeowner's insurance policy?
What type of structures may need separate coverage in a homeowner's insurance policy?
What percentage of the structure's insurance value is typically provided for interior coverage by most insurance companies?
What percentage of the structure's insurance value is typically provided for interior coverage by most insurance companies?
What is protected by liability coverage in a homeowner's insurance policy?
What is protected by liability coverage in a homeowner's insurance policy?
What type of natural disaster may require additional coverage in a homeowner's insurance policy?
What type of natural disaster may require additional coverage in a homeowner's insurance policy?
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What is the primary purpose of purchasing additional coverage for expensive possessions?
What is the primary purpose of purchasing additional coverage for expensive possessions?
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What happens to your bed if a tornado strikes your house and it's completely ruined?
What happens to your bed if a tornado strikes your house and it's completely ruined?
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What is the primary purpose of homeowners insurance?
What is the primary purpose of homeowners insurance?
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What type of event is typically NOT covered by a standard homeowners insurance policy?
What type of event is typically NOT covered by a standard homeowners insurance policy?
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What is one benefit of having liability coverage in a homeowners insurance policy?
What is one benefit of having liability coverage in a homeowners insurance policy?
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What type of damage is typically covered by a homeowners insurance policy?
What type of damage is typically covered by a homeowners insurance policy?
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What is an additional layer of protection that homeowners may need to purchase separate from their standard policy?
What is an additional layer of protection that homeowners may need to purchase separate from their standard policy?
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What is one of the four things that homeowners insurance usually covers?
What is one of the four things that homeowners insurance usually covers?
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What affects the policy price in a neighborhood with high crime rates?
What affects the policy price in a neighborhood with high crime rates?
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What happens to your premium and coverage if you opt for a higher deductible?
What happens to your premium and coverage if you opt for a higher deductible?
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Why might your policy rates be higher if you bought your home after multiple previous owners?
Why might your policy rates be higher if you bought your home after multiple previous owners?
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How can you save money on insurance costs?
How can you save money on insurance costs?
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What should you do to get the best insurance price?
What should you do to get the best insurance price?
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Why is it important to research an insurance company's background?
Why is it important to research an insurance company's background?
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Study Notes
Homeowner's Insurance
- Homeowner's insurance covers the value of a home's structure and its contents, as well as providing liability coverage against accidents in the home or on the property.
- Insurance typically covers four things: interior damage, loss or damage of personal assets, injury that occurs on the property, and exterior damage.
Types of Events Covered
- Damage due to fire, hurricanes, lightning, vandalism, and other disasters listed in the policy plan.
- If one of these events occurs, the insurer will compensate the homeowner to repair or rebuild the house.
Types of Events Not Covered
- Destruction or damage from floods, earthquakes, and poor home maintenance is generally not covered in the insurance policy.
- These events require separate coverage plans to be purchased if the homeowner wants added protection.
Coverage for Possessions
- Most insurance companies provide interior coverage for 50% to 70% of the amount of insurance on the structure of the home.
- For example, if a house is insured for 200,000,therewouldbeupto200,000, there would be up to 200,000,therewouldbeupto140,000 worth of coverage for possessions.
Liability Coverage
- Homeowner's insurance also provides liability coverage for the property, protecting against lawsuits filed by others.
- This coverage includes pets and visitors to the property.
Insurance Payments
- The deductible relates to the premium and coverage, with a higher deductible resulting in a lower premium and lower coverage.
- Homeowners can save money by bundling their home and auto insurance or searching for discounts.
Getting the Best Price
- Know what you want and shop around for quotes from different insurance companies and agents.
- Research the companies' backgrounds and ask friends and family about their experiences.
- Meet with insurance agents to see if you can work with them.
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