Homeowners Insurance Cost

Homeowners insurance or home insurance, also referred to as hazard insurance, it is an insurance policy for your property that covers your home. This type of insurance policy combines various protections, including monetary losses in your home, property, personal belongings, and accidents that occur on your property. It is required that at least one of the plan holders must reside in the insured home, but anyone who has a vested interest in the property, such as a mortgage holder, should be listed on the home owner insurance policy. House insurance is typically in effect for a fixed length of time, and the policy is paid in monthly intervals to the insurer which is referred to as a premium. Some times you may need more then house insurance which should be discussed with your insurance broker or real estate agent.

The cost of home owner insurance is determined based on the cost of the property and any of the items in the home that you would like insured. If you have some expensive or valuable items you will want to discuss high value home insurance. The normal policy itself itemizes what will be and what will not be paid to the insured, varying on the type of damage or loss. Generally, damage caused by termites, floods, or earthquakes is excluded from the policy. This means that home owner’s insurance policy will not compensate you for flood damage, termite damage, or damage to the foundations of the house. This is where you will need more then house insurance. Individual insurance policy add-ons, like flood or earthquake insurance can be purchased to cover these specific events. When purchasing homeowners insurance, it is extremely important to read your plan thoroughly and understand what types of damage are insured for. Your insurance agent can clarify any confusing parts or language so that you understand what you are paying for. If you reside in a geographical location prone to floods or other natural disasters that are not usually covered by insurance, ask your insurance agent about acquiring extra insurance to cover these unforeseen events.

There are various types of household insurance. The basic policy provides coverage for several different types of damage, including losses incurred due to fire and smoke, lightning, explosions, theft, even vandalism. Exceptions include what I wrote above such as, floods and earthquakes. Other forms of homeowners insurance policies include everything on the basic plan as well as other specific events or coverage that is specifically mentioned in the policy. If you have a rental property like a condo or house a special form of household insurance is available, this is usually called renter's or tenant's insurance. Renter's insurance offers coverage on personal property against the same forms of loses in the basic homeowners policy. It is common for a renter to have contents insurance before a rental agreement can be finalized.

Home owner insurance also has varying classes of coverage which are for different types of properties. Dwelling coverage insures the house itself but not damages to the land. A different class covers other structures on the land like garages. Personal property is insured under its own class, this is where you need to review and ensure any valuable objects are listed on the policy.

For home and condo owners who rent there is a type of insurance that covers expenses connected with living expenses such as loss of rent. If you are renting your home or condo to a tenant and your house incurred fire damage, this class of household insurance covers the loss of rent when you take time to fix your house.

Taking the time to find the right agent to take care of your needs will make it much easier to understand. Having a local insurance agent or even a realtor can help a great deal as well. They are experts in their field, and are committed to finding not only the perfect condo for you but also help guide you to a contents insurance policy that specifically suits your needs.