Get The Best Homeowners Insurance in 2023

Everyone has a dream home. It might be a spacious apartment in the middle of the city or a small cottage with a beautiful garden in the middle of nowhere. Regardless of where you live or would like to live, having comprehensive homeowners insurance is crucial.

Understanding Homeowners Insurance

Just as you would want the best home you can afford, you should want the best homeowners insurance you can afford as well. But before getting the policy, it’s essential to understand what it actually entails.

Homeowners insurance is a type of private property insurance that covers the infrastructure and the amenities of an individual’s residence. The policy provides coverage for events such as accidents, damages, robberies, natural disasters, and other various forms of liabilities.

Most home insurance has an extensive range. But insurance isn’t a one-size-fits-all product. You may need to customize your policy according to your home and your personal needs. The best homeowners insurance policy should cover:

• Interior damage
• Exterior damage
• Injuries that occur within the property
• Loss of assets or belongings

How Much Does the Best Homeowners Insurance Cost?

According to Bankrate, the average annual premium rate for homeowners insurance is $1,312. Many factors go into determining the cost of home insurance. Things such as your geographical location and insurance company make a big difference. Other factors include:

Price of Your Property

If you paid a significantly high price for your home, it will necessitate more expensive insurance.

Replacement Cost

There are policies which support full replacement if your dwelling is destroyed, but they may be quite expensive. If you want cheaper insurance, you might have to opt for partial replacement instead.

Age of the Home

According to BuyersAsk, the median age of a home is 37 years. The older your property is, the more it’s apt to need repairs. So, if your property is older than a few decades, your premium rate will be higher.

Size of Your Property

Big houses cost more money to rebuild or fix. It’s cheaper to insure a house that’s 1,800 sq. ft than a house that’s 5,000 sq. ft.

House Members

If you have more people living in a house, damage is more likely to occur. That means a home insurance premium is likely to be cheaper for a couple than a family of four.

Materials Used to Construct the House

The kind of cement, wood, or even paint used to build your house makes a big difference in calculating your insurance premium. If your home is made with better quality materials, then the premium will be less.

Exteriors

Areas exposed to the elements, such as roofs, windows, and doors, are more likely to sustain damage than interiors. So, a roof made from stronger material such as asphalt or metal may be cheaper to insure than a roof made of wood

Public Protection Classification (PPC)

PPC refers to your house’s distance from the nearest fire station, police station, or hospital. Having your property near these facilities will decrease the cost of your premium.

Pets

Your premium may be higher if you have a pet that bites. Some homeowners insurance covers dog bites. You could also opt for a pet insurance policy if you have pets.

Credit Score

People who have a lower credit score tend to file more insurance claims. So, they’re likely to be charged higher premiums.

House History

If your property is disputed or has an unresolved claim problem, it can lead to expensive premiums.

Security and Alarms

If you have a robust monitoring system for robbery and fire, your insurance rates will be less expensive.

Neighborhood

If you live in a neighborhood with a high crime rate, your agent may give you a higher quote for home insurance.

Amenities

If you have “attractive nuisances” such as a pool, pond, garage, garden, farm, or trampoline, your premium cost may be higher.

Note: Not all carriers insure risks related to pools, trampolines, or similar recreational items on a property. Make sure you check your policies before you buy them.

Some Home Insurance Companies You Can Trust in 2023

According to Bankrate, for the best homeowners insurance, here are some companies you can trust:

Note: USAA only caters to current and former military personnel and their family members. Additionally, the rates here are taken from an external source, they may vary according to the property you want to insure. Please contact the company you’d like to buy your insurance from.

Beware of Fraud: You may find companies that claim to provide legitimate home insurance at low prices but are actually fraudulent. According to the FBI, insurance fraud costs an average American family between $400 to $700 per year. Make sure you do your due diligence on the company as well as the agent before you invest in an insurance company.

Substitute Home Insurance

Although it’s always a good idea to get it, homeowners insurance (also known as HO3 policy) is not mandatory if you buy a home outright. But, if you’re like the vast majority of people, you’ll need a home loan to buy your house, and the lender will require you to have homeowners insurance. And there are no policies you can substitute for it.

But there are, however, policies which are great add-ons and can help reduce your home insurance costs. Examples include:

Hazard Insurance

Hazard insurance is a good way to secure your property from infrastructural damage. While home insurance hazard coverage is generally very specific to your contract, a separate hazard insurance policy is more general and is likely to give you overall protection from events such as storms, floods, fire, and earthquakes.

Pet Insurance

Pets are generally not covered under homeowners insurance. But you can get a personal liability insurance policy added to get partial coverage for your pets. You could also opt for a pet insurance if you want full coverage.

Personal Articles Insurance

While your standard home insurance may partially cover valuables, you’re better off with a personal articles floater insurance policy. With this added policy, you can reduce the cost of your home insurance and at the same time have maximum financial protection for all your valuables.

You can get a good home insurance coverage through Universal North America Insurance.

Best Homeowners Insurance Coverage: What Does It Cover?

Here is a list of things that your standard home insurance policy should include:

• Dwelling Coverage: This should be for approximately the replacement cost of your home. The policy helps you rebuild in case of a catastrophic incident.
• Personal Property Coverage: A standard home insurance policy not only keeps the structure of your house covered but also the valuables within.
• Liability Coverage: Your home insurance will only cover a certain amount of physical liability. It’s generally recommended that you get the coverage extended as much as you can afford. All of the people who live with you are generally covered under the policy.
• Additional Living Expenses: This coverage is a part of a standard home insurance policy. The coverage will help you pay for living and food expenses in the event that you have to temporarily vacate your home.

Note: Most of these endorsements are already a part of a home insurance policy. But their limits depend on the insurance company and its terms. Please check with your agent to get the exact details for your coverage.

Somethings Your Homeowners Insurance Will Not Cover

Your homeowners insurance may not cover you in the following scenarios:

• Natural disasters: Your home insurance may not cover all natural disasters. Even the ones which are included may only have partial coverage. Be sure to check with your insurance provider.
• Pets: A standard policy may not cover your pet. However, you can get in touch with your insurance company and get the policy added. It’s important to note that some dog breeds are not covered or are expensive to cover by homeowners insurance. For example, The Insurance Alliance says that dogs known for being aggressive such as pit bulls may be more expensive to cover with homeowners insurance.
• Cars: A typical policy will cover all your personal belongings. However, if your car breaks down in your garage, your home insurance won’t cover it. Car insurance is mandatory in almost all states and for good reason.
• Commercial property: If you use your home for commercial purposes then your standard home insurance will not cover the property. You might want to look into commercial property insurance.

Comparison Of Homeowners Insurance with Other Policies

Home Insurance Vs Home Warranty

Both home insurance and home warranties are integral parts of being a home owner. While both are contracts which offer financial protection for your home, their functions are quite different.

Homeowners Insurance Vs Renters Insurance

Homeowners and renters insurance are similar but used in different contexts. The main difference is that homeowners insurance is for people who own the property they live in, while renters insurance is for people who rent the property they live in.

While a homeowners insurance policy covers structural damages, renters insurance won’t.

Homeowners Insurance Vs Landlord Insurance

Landlord insurance is very similar to homeowners insurance. A landlord insurance policy will typically only cover the structural part of the property. To buy homeowners insurance as a landlord, you are required to live in the property you are renting out.

If you live on your property and only have tenants occasionally, it’s better to have homeowners insurance. For example, as with homeowners insurance, a landlord’s policy will cover broken pipes… But unlike homeowners insurance, it won’t cover property damage caused as a result of the pipe damage.

Why You Should Consider Using a Homeowners Insurance Agent?

One of the best things about purchasing a policy with an insurance agent is that their service is tailored to your needs. From finding the appropriate insurance, to answering the phone, expect everything from your local insurance agent.

Many independent insurance agents go the extra mile to further customize their services, so that you will tap into your network of friends and family to be part of their ever-improving offerings. Additionally, working with agents is a good idea because they are responsive and easy to contact when needed.

Get Expert Advice

Many people may not know the coverage they need or the insurance they need to protect their families. This is where cooperation with local insurance agents becomes important. They offer professional advice to their customers and will inform you about the best options out there.

An independent insurance agent, often representing multiple insurance companies and they will help you find the best deals.

Helps You Save Money on Insurance

An agent who works for an insurance company may not care if premiums go up. Local insurance agents are easier to find so you will be able to get in touch with them if you have concerns about premium increase. The agent will then help you find a cheaper and hopefully better alternative coverage. If anything, it will save you a lot of time and money.

Helps you in the claim process

Anyone who has been involved in an insurance claim will tell you that it is not a pleasant experience. However, an agent will make the process much easier. Not only do they help by enforcing the claim quickly, but they can also ensure that sooner or later you will be compensated.

Your insurance agent will also guide you and tell you if it’s worth making a claim or not. Knowing this will benefit you and will help you decide accordingly.

Conclusion

At Agency Height our insurance agents offer many opportunities for the customer to save money and get better, mostly customized service. We help you find an experienced insurance agent who is responsive, helpful and works with an extensive list of insurers. If you’re interested in finding best independent insurance agents near me and get homeowners insurance quote, you should get in touch with a local insurance agent.

Any questions or comments? Feel free to leave them below.

Top 5 Best Homeowners Insurance Companies in 2023

Read full review on best homeowners insurance companies and decide which company and policy suits you the most.

• Geico
• Allstate
• Penn National
• Farmers
• Edison