Homeowners

What your homeowners insurance covers.

It typically covers damage from fire, windstorm, hail, water damage (excluding flooding), riots, explosion, as well as other sudden and unexpected losses., i.e. theft, and the extra cost of living elsewhere while your home is repaired or rebuilt.
It covers your legal liability (up to policy limits) if you, members of your family or even your pets hurt other people or their property, not just your house, but away from it, too.
Do annual insurance policy "checkups" to keep up with local building costs, home remodeling and inventories of personal belongings. Make sure that you have updated insurance to rebuild or repair your home for what it would cost in the current building market. Accurate inventories of personal possessions make for faster and smoother claims' settlements. Photos and videos offer easy ways to document your stuff.

Key Consumer Tip:

Understand what is and isn't covered by your homeowners insurance policy to ensure that you are able to rebuild your home and replace your personal belongings.

Factors that affect your homeowners insurance cost and policy renewal.

The square footage of the house and any additional structures, such as a detached garage.
Building costs in your area.
The type of construction, materials, and features on your home, including the roofing.
Crime rates in your neighborhood.
The likelihood of damage due to a disaster, such as a wildfire, hail or wind.
Distance to a fire hydrant and a fire station, whether your neighborhood is protected by professional or volunteer firefighters, and any factors that affect the time it would take to extinguish a fire in your area.
The condition of the plumbing, heating and electrical systems in your home.
Many companies use good credit history to offer you a discount or as one of the factors in deciding to sell a policy to new customers.
The number of claims you file over a certain period of time can put you at risk for non-renewal or higher premiums. Insurance is designed for large, "sudden and unexpected" losses, not for minor "wear and tear."

Key Consumer Tip:

Many factors determine what you'll pay for homeowners insurance, so whether you're buying or building a new home or just reviewing the cost and coverage under your current homeowners insurance policy, be aware of what affects your bottom line.

Saving on homeowners insurance.

Consider taking some steps to make yourself a better risk and save money.

Install safety & security devices. You can often save up to 15 percent on you premium with deadbolt locks, fire extinguishers, smoke alarms, burglar alarms and fire alarms that alert your local police and fire stations. Check with your agent to see if your insurance company has specific requirements to qualify.

Increase the deductible on your homeowners policy. Increasing your out-of-pocket payment from $250 to $500 or even $1,000 can save you money on your premium and it will discourage you from making small claims, which could put you at risk for being non-renewed.

Check into a multi-policy discount. Some companies offer a price break for having more than one type of policy with the same company.

Maintain good credit. Many companies provide discounts or consider good credit as one of the factors when selling new policies, so it can really pay off to manage your personal finances.

Invest in hail and fire resistive roofing products. Your roof is the most vulnerable part of your home and many companies consider the roofing materials into the premium you are charged. Depending on where you live, some companies charge a percentage, rather than a dollar deductible or surcharge on a roof made out of high-risk materials, like wood shingles or shakes.

It pays to shop around for insurance coverage. Keep in mind that the cheapest policy is not necessarily the best. Selecting a company that provides good customer service and one that fits your personal needs is critical, especially when it comes time to file a claim.