Cost of home insurance: summary of home insurance policies, coverage, quotes and discounts
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Cost of home insurance: summary of home insurance policies, coverage, quotes and discounts

Homeowners insurance is a type of insurance policy that protects homeowners against damage and loss caused by perils such as theft, fire, injured visitor lawsuits, extreme weather, etc. Your whole life can change in a minute. What if your house suddenly burns down? Or does a once-in-a-lifetime flood or tornado come to destroy it? You’ll be protected as long as you’re smart about the cost of home insurance and the policy you choose.

If you already have homeowners insurance, it’s a good idea to review your policy each year with your financial advisor to make sure you still have enough coverage to meet your needs. You can always add to your policy at any time to reflect changes to your home and property such as remodeling, renovation, landscaping changes, etc.

As with any type of insurance, people take the time to shop around and get different quotes from various companies and compare what is included and the prices. When considering the cost of home insurance, think about the price of rebuilding rather than the current value of the home. The materials and construction costs of rebuilding your home will likely cost much more than the home’s current value.

Cost of home insurance by type of policy

Where should I start with the investigation? Just understand that there are various types of insurance policies, ranging from HO-1 to HO-8. Most single-family homeowners find HO-3 to be ideal, as it is fairly comprehensive and provides coverage for most of the “perils” they will face, such as theft, fire, and wind. Flood and earthquake coverage aren’t usually included, though, so you may want to add these if you think you’ll need them. Even a small stream can turn into a raging river overnight; Don’t underestimate the destruction that water is capable of causing.

Some banks will actually require you to get flood insurance if you live in the “flood zone” in order to qualify for a home loan.

How much does home insurance cost? It really depends on factors like the value of the home, where you live, the crime rate, the size of the property, your own credit history, etc. People in riskier areas will obviously have to pay more. Generally speaking, homeowners can expect to pay between $30 and $40 per month for every $100,000 of home value. Discounts are available for those who take extra precautions like getting fire alarms, sprinklers, security cameras, etc.

The best way to get low home insurance cost and discounts is by visiting Lemonade Insurance, where policies start “at $25 a month” and claims are paid quickly.

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