Today, we will talk about our homes. What is your home like? A bedroom or bedrooms, living room, working bathroom/kitchen etc. But what makes a place home is its permanence and security, and investment towards home insurance provides just that. Home insurance or property insurance is a type of coverage provided to you by your insurer for covering losses and damages of an individual’s residence, along with furnishings and other assets, liabilities against accidents etc.
Usually, a home insurance policy covers the interior and exterior damages, loss or damage of personal assets and injury that arises while living in the property. Every property insurance has a liability limit, which determines the cost of coverage the insurer has to bear for any accident.
Why is home insurance important?
The law doesn’t mandate home insurance, but your lender is likely to ask for property insurance. Why? To protect their investment in case you have a mortgage. Even if you’re not living with a mortgage, investing in home insurance is always a wise decision as it provides you with both property and liability coverage. A home insurance policy is usually seen in six types of covers: Dwelling, Other structures, Personal property, Additional living expenses, Liability, and Medical Payments.
Dwellings cover damage to the home and structures, providing enough coverage to buy a new/rebuilt home. Other structures cover stand-alone structures such as fences etc., covering 10% of the dwelling coverage. The personal property offers repairs or replacements for belongings that are damaged or stolen. It provides 50% to 70% of dwelling coverage. Additional living expenses offer temporary living expenses while your house is being repaired, covering 20% of the dwelling coverage. Liability covers for you during injuries or property damage through neglect. It offers $100,000 to $500,000. Lastly, Medical Damages provides for injuries on your property regardless of the defaulter. It also covers for you if a family member or a pet is injured. It provides $1000 to $5000.
How should you buy home insurance?
The cost of home insurance would vary from company to company in different regions and states. But undoubtedly it can be not easy to find the right policy which perfectly suits your needs and budget. To make sure your investment doesn’t go down the drain, then make sure you’re comparing quotes using verified tools on the internet, or you’re making sure your consulting agent is confirmed with a recognized company they are working with. Taking higher deductibles in a home insurance policy would lower your premium and discourage you from making unnecessary claims.
Make sure that your house is in the shape of the rebuild to make your claim easily because facing a property loss without insurance is as scary as breathing underwater without an oxygen mask. There are many oddball exclusions that home insurers insist you buy, but their plans do not provide the coverage for it, such as mould, sinking, flooding and many more. To ensure you’re being covered for any of these scenarios, make sure you have a different policy for it.
Best Home Insurance Companies
According to a website, USAA has scored the highest satisfaction out of more than two dozen insurers as per J.D. Power 2020 U.S. Home Insurance Study. Even though the company is exclusive to selected members, USAA provides their customers with insurance coverage and quality services.
Even though Amica has no restriction on its membership, it can be expensive during the initial years of investment since Amica is a mutual company. Through Amica, not only you are provided with an insurance policy, but you are also given certain shareholder rights of the company, where the wealth earned by the company is distributed among the members in the form of an annual dividend, which is usually 5% to 20% of the premium you paid.
Other top home Insurance Companies
- Auto-Owners Insurance Group of Companies
- Erie Insurance Group
- State Farm
- Auto Club Group
- Nationwide Mutual Insurance Company
- Farmers Insurance
Companies to watch out from!
We all want to invest where a company gives out the best customer service at an efficient cost. Still, even after paying more or less for an insurance policy, we might not get the coverage or customer service we deserve. So, to make sure you do not fall for coverage that results in a painful loss, we shall present some companies you might have to avoid during your home insurance shopping.
- Liberty Mutual
- American Family
- ASI Progressive
- UPC Insurance
- National General
And voila! We’re done. We hope from our analysis you’ve found what you’ve been looking for. Trust us, from home insurance to tips on finding the right policy and giving you a list of home insurance companies (best and worst), we have got you covered. Let us know what has been your favourite part about our article and what else you would like us to research.