A standard homeowners’ insurance policy protects your home—meaning the structure itself and the things inside of it. This includes liability for damage caused to visitors and damage caused by natural disasters. Standard policies also include coverage for additional living expenses in the event that an insured disaster displaces you and your family temporarily. Be advised when shopping for insurance quotes, however, that flood and earthquake insurance are considered separate policies. Thus, if your lender requires either of these, you will need to obtain a separate insurance quote. Also, problems that arise as the result of poor maintenance are generally not covered by homeowners’ insurance.
Lenders may require you to have coverage while you are making payments on your mortgage. If you own your home, you are not legally required to purchase homeowners’ insurance the way you are required to always have auto insurance, says the Insurance Information Institute. However, having homeowners’ insurance is advisable to protect your investment.
Unsure of which homeowners’ insurance to select? Free insurance quotes are available almost instantly online. When you compare quotes, be sure to take into account the cost of rebuilding your home and any structures such as a garage or gazebo; the total cost of your belongings; the cost of landscaping such as trees, flowers, and shrubs; and the cost of living somewhere else in case your home is damaged. Additionally, most companies recommend at least $300,000 of liability protection.
