Home Insurance Cost: Summary of Home Insurance Policies, Coverage, Quotes, and Discounts

Home insurance is a type of insurance policy that protects homeowners against damages and losses caused by perils such as theft, fire, lawsuits from injured guests, extreme weather , etc. Your whole life can change in a minute. What if your house suddenly catches fire? Or a once-in-a-lifetime flood or tornado come through 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 home 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, renovations, landscape changes, and more.

As with any type of insurance, people take the time to shop around and get different quotes from different companies and compare what’s 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 building your home will likely cost more than the home’s current value.

Home Insurance Cost By Policy Type

Where should you start researching? Just understand that there are several types of insurance policies, from HO-1 to HO-8. Most single family home owners consider the 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 However, flood and earthquake coverage are usually not included, so you can add those if you think you’ll need them. Even a small creek can turn into a raging river overnight – don’t underestimate the damage that water can do.

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

How much does home insurance cost?

It really depends on factors such as the value of the home, where you live, crime rate, property size, your own credit history, and more. People in more dangerous areas obviously have to pay more. In broad terms, homeowners can expect to pay between $30 – $40 per month for every $100,000 of home value. There are discounts available for those who take extra precautions, such as getting fire alarms, sprinklers, security cameras, etc.

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

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