Whether this is your first time buying home insurance or your 10th, you likely have some preconceived notions about what insurance policies cover. You probably also have ideas about whether having a policy is even worth it. Like any insurance you pay for, it may feel like you’re pouring your money down the drain until you need to file a claim.
According to the Insurance Information Institute, one-fifth of all homeowners file an insurance claim every year. In 2019, 97.2% of all claims were due to property damage. Wind and hail were the leading cause of damages, accounting for 34.3% of the claims, followed by water and freezing damage for 29.4% of claims filed.
Though it can be painful to pay out those monthly premiums, paying the costs to repair your home and replace your valuables can be devastating. The average cost of homeowner losses is $13,582. If your home is in the path of a hurricane, tornado or wildfire, you stand to lose everything. Having home insurance ensures you can recover losses and get your life back.
Insurance policies can vary in terms of premiums, limitations and coverage options. However, most comprehensive policies offer protection for a similar, basic set of perils, including:
* Fire, smoke and lightning
* Wind and hail
* Snow, sleet and ice
* Theft, vandalism and civil disturbances
* Water damage from freezing pipes
Though these coverages are common, it’s important to review your policy to ensure it lists expected protections.
You may think that purchasing comprehensive coverage protects you against damages for any incident you might encounter. The truth is it doesn't. You need to read policies carefully to determine what exclusions are named in the fine print. Additionally, most policies do not cover damages for certain events.
In the past three years, a total of 50 weather and climate disasters resulted in damages exceeding $1 billion each, and tropical storms and hurricanes are the leading cause. However, hurricane and flood damages are not covered in home insurance policies. You need to purchase a rider if you live in a hurricane or flood zone. Likewise, those who live in places that are fraught with earthquakes should consider adding an earthquake rider to their policy.
In 2018, the average premium for homeowner’s insurance in the U.S. was $1249. Louisiana’s rates were the highest of any state at $1,960, while Oregon’s rates were the lowest at $706. Your insurance rates depend on several factors, including:
* What state you live in
* What neighborhood your house is in
* Your home’s value
* The limits you choose
* Any discounts you receive
If you add any riders to your policy, it will affect how much you pay in premiums every month.
Shopping for home insurance can be a time-consuming and exhausting endeavor. At Billy.com, we make it easy for you. You provide us with your information and needs, and we do the legwork for you. Let us try and save you some money on your auto insurance today!
Our top-rated pros find trusted providers who offer the best insurance in your area and compile a list of free quotes for you, so you can compare policies and rates to select the policy that works for you. Reach out to one of our experts today for more information about our services!
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