What is home insurance? What does home insurance cover? How does home insurance work? All good questions. Home insurance is more than just a boring home ownership requirement. It’s a wise investment for any homeowner. It helps protect your home — and your stuff — from all kinds of undesirable situations. Here are nine things you need to know.
- Home Insurance Covers Property Damage There are all types of home insurance, but one of the main benefits is that — depending on the amount of coverage — it may help with the cost of fixing or rebuilding your home if something unfortunate happens. Picture a fire, a storm, a break-in, or someone driving a hotdog-shaped car through your window, you get it.
- It Covers Personal PropertyAnother benefit of home insurance is that — depending on the amount of coverage — it may help pay for replacing or repairing the stuff inside your home, like your furniture, clothes, laptop, crystal turtle figurine collection, you name it. If something gets stolen or damaged, your home insurance will cover it.
- It Could Even Cover Personal Injury Claims Some home insurance covers personal injury claims by providing accident liability coverage for the property owner. If you find yourself in this kind of sticky situation, it would be wise to have home insurance.
- …And Medical Bills Home insurance could also pay for the medical expenses of guests injured on your property. For instance, if a
drunk old manvisitor falls down your stairs and files a claim. Your home insurance will also cover the medical bills on top of any fees.
- Living ExpensesHome insurance may also cover the extra costs you incur if you can’t live in your home while it’s being fixed or rebuilt. That includes hotel stays and meals. Not too shabby.
- Home Insurance is Affordable, ReallyAverage homeowners insurance is less expensive than you might think. The National Association of Insurance Commissioners (NAIC) reports that the average cost of home insurance is $1,312 per year or $109 per month in 2020. Your average home insurance cost, of course, will depend on things like where you live, how much coverage you want, how much deductible you choose, and what discounts you get.
- Just For YouHome insurance is not a one-size-fits-all product. You can make your home insurance policy fit your needs and budget by choosing the coverages that suit you best. You can even get more coverage for valuable items like jewelry or tech.
- What is Hazard Insurance?It’s pretty important, given that it covers the actual structure of your home from, well, hazards. You can get protection against specific risks like floods, earthquakes, you name it.
- It’s EasyHow to shop for home insurance? That is the question. It’s easier than ever, thanks to online tools and resources that help you compare rates and coverages from different providers. Once you have a home insurance policy in place, you can easily manage it online or through an app.
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At the end of the day…
Home insurance is a vital service for homeowners of all kinds. It protects you and your family from various risks and gives you peace of mind.
If you’re asking yourself, “How much home insurance do I need?” Trust that there are affordable options out there to suit your needs. MoneyLion is here to help.