If you own a home, insurance is a must. Learn what homeowners insurance covers and how to find the best policy for your budget.
It took you years to save up a down payment and find the perfect home. Now that you’re ready to close the deal and move in, it’s time to find a homeowners insurance policy. At Southpoint, we can help you find comprehensive coverage that fits your budget and your mortgage company’s requirements.
Most mortgage lenders require homeowners insurance before a home purchase, and for good reason—it covers you from the financial aftermath of common property and liability risks. Even if your mortgage is paid off, you still need home insurance to keep you on your feet after unexpected damage to your property. Though each insurance company includes its own special coverages in a home policy, every homeowner’s policy pays for specified claims resulting from bodily injury or property damage.
Homeowner’s policies are similar to commercial business owner’s policies; both provide a combination of general liability and property insurance, plus additional coverage for expenses incurred while waiting for repairs. However, homeowners insurance is designed for individuals, and it often excludes coverage for business-related claims. Every policy contains three primary coverages: dwelling and other structures, personal property, and personal liability.
In a homeowners policy, dwelling coverage pays to rebuild or repair your home and attached garage after a property damage incident. If you have structures on your property that aren’t connected to your home, including a detached garage, shed, or fence, your policy protects them under “other structures” coverage. Dwelling and other structures coverage typically pays for claims resulting from fire, lightning, hail, windstorms, theft, falling objects, vandalism, and explosions.
If an unexpected disaster damages the valuable furniture, electronics, and clothing inside your home, your homeowner’s policy will pay to repair or replace these items. Home policies specify the types of claims you can file—for example, most policies won’t cover damage related to certain natural disasters, such as floods or earthquakes. Depending on your policy, you might also have restricted coverage for valuable items like jewelry. Your personal property limit is usually proportional to your dwelling and other structures limit.
Most people associate homeowners insurance with property claims, but personal liability insurance is an essential coverage. If a guest gets injured on your property and files suit against you, personal liability insurance pays for lawsuit costs and damages. Personal liability coverage also pays for minor medical bills from injuries, such as dog bites, to prevent the injured person from suing. In addition to injury claims, personal liability coverage pays if you or a family member damages someone else’s property and that person sues.
It’s not easy to buy a house, especially in our current market. Don’t let your hard work go to waste—protect your home and your financial future with homeowners insurance. At Southpoint, we partner with top insurance carriers to find the best coverage for your needs.
The cost of a homeowners insurance policy depends on a few factors: your location, your claims history, and the value of your covered assets. If you live in a zip code with high home values or frequent natural disasters, and your own home is high in value, your home insurance premium will reflect those risks. Additionally, owners who file regular liability or property claims typically pay higher premiums than those with a clean claims history.
In addition to your area and claims history, the type of coverage you choose impacts the cost of your insurance. If you choose a policy with replacement cost coverage, your insurance company will pay to replace your assets with similar materials, regardless of how old your damaged property was. Actual cash value coverage pays for your damaged property’s current value and takes depreciation into effect. As a result, actual cash value policies tend to be cheaper than replacement cost policies.
Our insurance experts at Southpoint can help you determine the best policy type and coverage limits for your home at a premium that won’t strain your bank account.
There are many factors to take into consideration when finding coverage for your home. If you need a homeowners policy but are unsure where to begin, Southpoint can help. Our team members are skilled in assessing the risks unique to your home, and they have years of experience finding competitive quotes from leading insurance companies.
Contact us today to learn more about how we can minimize your home insurance cost and find complete coverage for your new or old home.