Guide to Home Insurance Companies: Questions to Ask When Looking for Insurance Coverage

What exactly is home insurance? A typical policy will cover repairs or even rebuilding your home if it’s damaged by common perils like fire, lightning, vandalism, etc. If you live near a body of water, you may also be able to get flood coverage. Most homeowners insurance companies will offer coverage that pays for medical and legal expenses if someone other than you or a family member is injured in your yard or home.

Some interior items are covered, such as furniture, appliances, walls, and windows, but items such as artwork, jewelry, and other collectibles are not covered, at least under an umbrella policy. Generally, you would have to apply for special coverage for such items. If you have an expensive collection of art, antiques, jewelry, etc. you want coverage for, check and see how each homeowners insurance company covers you by comparing quotes.

Another thing to consider is the cost of local hotel rates, or the cost associated with having to live with a relative, should your home become uninhabitable for a period of time for whatever reason. Maybe it’s being repaired or even rebuilt. Would it be worth having coverage in your policy to help with additional living expenses if you have to stay somewhere else? Or do you have a relative or a safe place to stay nearby and you’re sure those expenses won’t add up to much?

The importance of the location of home insurance companies

Location obviously plays a huge role in how much home insurance companies will charge you for their payments. It’s going to be a big factor, whether you like it or not, if you live in an area that’s vulnerable to a lot of natural disasters. However, that doesn’t mean you can’t afford it. You may be able to get discounts if your property has some weather resistant features. Even having a sprinkler system and alarm system setup will go a long way in helping you save.

What does your bank or mortgage lender require? You may only need to have enough coverage to pay off the mortgage and not necessarily to repair or replace the home. If you’ve already paid off the mortgage, estimate the cost of NEWER materials if your home needs to be rebuilt. Don’t think about how much the property is worth right now, think about how much it will cost to rebuild each room and the entire house. If it’s an older house anyway, would it be better to have basic coverage and take the risk?

These are all the questions you will have to ask when you are researching home insurance companies. The best place to start right now is with Lemonade Home Insurance. This company offers a unique and affordable approach to insurance and works with all major lenders. You can easily get a quote in seconds.

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