Lower Your Home Insurance Rates

When shopping for homeowners insurance, one of the most common questions is: What does home insurance actually cover? A standard home insurance policy typically includes protection for your home’s structure, your personal belongings, and liability for injuries or property damage that occur on your property.

Here’s a quick breakdown of standard home insurance coverage:

• Dwelling Coverage: Pays to repair or rebuild your home if it’s damaged by fire, storms, or other covered events.
• Personal Property: Covers the cost of replacing your belongings — like furniture, electronics, and clothing — if they’re stolen or damaged.
• Liability Protection: Protects you financially if someone is injured on your property and you’re found legally responsible.
• Additional Living Expenses (ALE): Pays for temporary housing and other expenses if your home becomes uninhabitable due to a covered loss.

Understanding what’s included (and what’s not) helps you choose the right level of protection. Always review your policy for exclusions and limits.

The cost of home insurance can vary widely depending on several factors, including your home’s location, age, value, and the level of coverage you choose. On average, homeowners in the U.S. pay around $1,500 per year, but rates can range from under $1,000 to over $3,000 annually.

Key factors that affect your homeowners insurance premium:

• Location: Areas prone to natural disasters like hurricanes or wildfires typically have higher rates.
• Home Value and Rebuilding Costs: The more it would cost to rebuild your home, the more you’ll pay in premiums.
• Deductible Amount: Choosing a higher deductible can lower your premium.
• Coverage Levels: Adding extra protection for valuables or increasing liability limits will increase your rate.
• Claims History: A clean claims record may qualify you for discounts.

To find the best rate, compare quotes from multiple home insurance companies and consider bundling with auto or other policies.

Many homeowners confuse home insurance and home warranties, but they serve very different purposes. Knowing the difference can help you decide whether you need one, the other, or both.

• Home Insurance covers damage caused by unexpected events — like fires, theft, or natural disasters. It’s required by most mortgage lenders and protects the structure of your home and personal belongings.
• A Home Warranty is a service contract that covers the repair or replacement of major home systems and appliances due to normal wear and tear — like your HVAC system, water heater, or kitchen appliances.

Think of it this way:
Home Insurance = Protection from emergencies
Home Warranty = Help with home maintenance

Both can bring peace of mind — just in different ways.