Homeowners insurance policies protect your most valuable assets, including your house, condominium, or mobile home and your personal belongings. Purchasing homeowners insurance can save you from the financial headache that can follow a claim on your home. A-MAX understands this and can help you find the right amount of coverage to fit your budget and protect your home with just a few clicks. Contact us for a free quote!

What is Homeowners Insurance?

A homeowners policy is a contract between a homeowner and an insurance company that provides financial protection to the homeowner and their family members in case their home or personal belongings are damaged in a claim, or if they hurt another person unintentionally. The homeowner pays an agreed-upon premium to their homeowners insurance carrier so that the carrier will respond after a loss involving the insured property and pay certain expenses based on the coverages you select on the policy.

What Does Homeowners Insurance Cover?

Homeowners insurance protects you and your home against potential losses. Homeowners coverages include:

• Dwelling Coverage: This covers the structure of your home including the walls, floors, roof, interior building materials like flooring, tile, and cabinetry, as well as structures that are attached to the house like a deck, porch, or attached garage.

• Other Structures Coverage: This covers any structure on your property that is not attached to the house such as a fence, shed, or detached garage.

• Personal Property Coverage: This covers your personal belongings if they are damaged or destroyed in a covered claim, or stolen. This can include furniture, clothing, electronics, and more.

• Loss of Use Coverage: This pays your additional living expenses if you have a claim at your house that makes the house unlivable until the damages are repaired. This will pay for things like a stay in a hotel or short-term rental, food, and other things you will need while you are displaced from your home.

• Personal Liability Coverage: This will cover you if you are held legally responsible for hurting someone else or their property unintentionally, or if they are injured on your property due to your negligence. The coverage will pay legal expenses, medical expenses, and other damages up to the policy limit.

• Medical Payments: This will pay the medical bills for someone who is injured on your property up to the policy limit.

Keep in mind that you will select a property deductible when you purchase your homeowners policy from your insurance company. If you file a covered loss against your dwelling, other structures, or personal property, the amount of the deductible you selected will be withheld from the payment the insurance company releases to you after the claim.

There are additional robust coverage options that you can purchase for an additional premium to protect yourself and your home on most homeowners insurance policies. Consider asking your agent or insurance company about extended replacement cost on your dwelling, replacement cost coverage on your personal property, equipment breakdown coverage, underground lines coverage, and more.

Benefits of Homeowners Insurance

Financial Protection: Homeowners insurance protects your home and personal property if they are damaged in a covered claim, or will pay legal and medical expenses to anyone that you or a family member hurt unintentionally, whether the loss occurs on your property or not. Having the right homeowners insurance coverage on your home will protect your most valuable assets and can save you from financial ruin.

Peace of Mind: When you purchase homeowners insurance, you can rest easy knowing that you're covered in case of unexpected events.

Potential Discounts: Many insurance companies offer multi-policy discounts if you bundle your homeowners insurance with your auto insurance. In addition, you may qualify for additional discounts that will make your homeowners insurance more affordable and attainable.

Protection Against Fines and Penalties: If you have a mortgage, your mortgage lender will require that you carry homeowners insurance that protects at least their financial interest in the property. Not having enough homeowners insurance can lead to fines and penalties from your lender. Of course, even if you don't have a mortgage, homeowners insurance is a necessary expense to incur to protect yourself and your assets.

Eligibility Requirements

Anyone who owns a home, condominium, or mobile home is eligible for homeowners insurance. You will need to provide the following information to get a homeowners insurance quote that suits your budget and provides the protection you need on your policy:

Personal Information: You will need to provide details such as your full name, date of birth, property address, and mailing address. Some insurance companies may ask for your social security number as well.

Claim History: When applying for a new homeowners insurance policy, you will need to provide the dates and details of any past claims you may have had on a homeowners or renters insurance policy as well as any properties you may own that are insured on a landlord policy. Your agent or insurance company will need the date, description of what happened, and payment amounts for any claim you may have had on any of your owned or rented properties.

Property Information: You will need to provide the details of your home such as the year it was built, its square footage, what kind of heat it has, and when things like the roof and the electrical system, heating and cooling systems, and plumbing system were last updated.

Coverage Preferences: If you already have an active homeowners insurance policy, you can refer to the current coverage on your policy to get an "apples-to-apples" quote and discuss higher or lower coverage limits based on what you're looking for. Keep in mind that your insurance agent or insurance company will run a new replacement cost estimator to get an idea of what the dwelling should be insured for taking into account the most recent costs of labor and material. This may be higher or lower than the coverage you have on your existing policy. Your other structures, personal property, and loss of use coverages are usually derived from the amount of the dwelling coverage. You should have an idea of how much coverage you want or need, the deductible you would be comfortable paying out-of-pocket after a claim, and elect any optional or recommended coverage options you may need or want.

What Determines Homeowners Insurance Cost?

Homeowners insurance quotes are determined by many different factors including:

• Location

• A homeowner's credit score

• Replacement cost of the home

• Exposure to extreme weather such as floods, earthquakes, tornadoes, or wildfires

• Past claims

• Updates that have been done to the home

• The presence of safeguards such as a home security system or smoke detectors

• The types of pets you have

• Available discounts such as a loss-free credit or multi-policy discount