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You can insure almost anything these days, but one of the most important assets for you to keep under wraps is your home.
Your home is not just one of your most important investments; it’s a sanctuary. The building keeps your family safe, keeps out harsh weather, and provides a special space in which to thrive and make new memories together.
Still, life is unpredictable. Unexpected events like fires or severe storms can damage your house at any time. Without homeowners insurance, you could find yourself entirely responsible for paying for the cost of these repairs out of pocket.
While not all repairs are expensive, the cost of repairing a storm-damaged roof can range from $2,000 to $20,000, and restoring a home after fire damage could cost up to $38,000. With this in mind, having the right insurance policy can provide essential financial protection if something unexpected happens at home. The last thing your family needs when recovering from a major disruptive event is struggling to pay for the necessary repairs that impact your home's structure.
What’s the right level of coverage? While a homeowners insurance policy gives you a financial safeguard and invaluable peace of mind, it’s important to understand the kinds of losses home insurance covers. Below we also cover how to file a claim.
You can enroll in several types of home insurance policies. The most popular would be the standard HO-3 policy, which offers coverage for your house and personal possessions on your property.
Although home insurance covers a lot, it only pays the benefit in certain situations. When you enroll in a homeowners policy, you'll see a list of covered "perils." What this means is that if any of these events occur and damage your home or possessions, your insurance will cover it (and if not, you will have to pay out of pocket for the cost of repairs and replacements).
Fortunately, the list of covered perils for the typical HO-3 insurance policy is rather extensive. Typically, it includes the following:
If you believe you need more coverage, you can level up to an HO-5 policy.
The perils listed above are the general situations a standard homeowners insurance policy will cover. What could each one cost you without the right insurance? Let's look at a few scenarios.
Mold is every homeowner's worst nightmare. Not only does it grow quickly and look unsightly, but it can also linger and become a health hazard.
The average cost to professionally remove mold is around $10 to $25 per square foot. Your home insurance should help to pay for this if the mold happens as a result of accidental or sudden water damage, like from a burst pipe.
The policy won't cover it if the mold is the result of a leak that you failed to repair promptly.
No matter how durable your roof is, one serious storm with hail or strong winds could crack shingles and cause leaks.
Without insurance, you could end up paying between $360 and $1,550 to repair your leaking roof. However, ignoring a leaking roof can lead to much worse (and more expensive) problems like:
It's best to repair even small leaks in the roof or pipes as soon as you can so that if a disaster strikes, your insurance will still cover it.
If you've ever dealt with a plumbing problem, you know how expensive and time-consuming the restoration process can be. Your home insurance policy will typically cover any sudden and accidental plumbing damage, such as:
Your insurance will only cover frozen pipes if your home has a working heater. It also won't cover any plumbing damage that results from negligence or preventable leaks.
If you notice a broken pipe or a major plumbing leak, contact a plumber right away.
One of the most important ways home insurance protects you from losses is with the personal property coverage involved. Here, your insurance policy extends beyond the roof and walls of your home to items such as your clothes, furniture, or electronics.
For example, if you went away on a week-long vacation and someone broke in and stole your flat-screen TV and laptop, you can file a claim with your insurance company. The insurer will send you a check to replace the stolen items.
Property protection is also essential in worst-case scenarios like fires. If a devastating fire burns down your home and destroys clothes and furniture, your homeowners insurance policy should help you pay to replace these destroyed items, as well as your home.
In most cases, your policy will have a personal property coverage limit (typically between 50% and 75% of your dwelling coverage limit). Your dwelling coverage is what pays to replace your home after a fire burns it down.
So, if your dwelling coverage limit is $300,000, then your personal property coverage would likely be between $150,000 and $210,000.
Pay close attention to coverage limits in addition to covered perils when exploring your policy options.
It’s true; you don't have any legal obligations to obtain home insurance. However, any reputable mortgage company or lender will likely require it.
Even if it isn’t a mortgage stipulation, having a sufficient policy in place can be worthwhile. According to the Insurance Information Institute, 5.3% of insured homes filed claims in 2021. Of these claims, 97.7% were for theft or property damage, so without insurance, all of these homeowners would have been financially responsible for these losses.
Filing a claim with your insurance company is much easier if you know what to do. In many cases, the contractors working on your home will help you with the necessary paperwork.
Here are the steps for filing a home insurance claim:
The first and most important thing to do when filing a claim is to gather the necessary paperwork. Are you filing a claim because of a theft incident? You must submit a copy of the police report, which also means you need to contact the police immediately.
Are you filing for other reasons, like smoke or water damage? You'll need reports from the contractors describing the extent of the damage. It’s also a good idea to take pictures or videos.
The adjuster is your homeowners insurance company's representative. Their job is essentially to evaluate the extent of your home’s damage or losses and report back to the insurer.
Give this person as much detail as possible about the incident. They’ll also need the documentation mentioned above.
Whether your family needs to rebuild after a devastating fire or recover from severe water damage, it's crucial to hire the right contractor.
Reputable contractors have plenty of experience liaising with residential insurance companies and can help you with the claims process. They also make the recovery process easier.
No matter how well you take care of your home, you can't prevent thefts, accidental fires, or sudden water damage from happening. Still, if you have the right insurance, you won’t have to face a significant loss on your own or carry the financial burden thereof. Getting home insurance provides the ultimate household assurance by protecting your home's structure and your personal belongings from unexpected loss so that everyone can move forward.
The team at Insurdinary has seen first-hand the difference it can make to have the right insurance policy to protect a home and family. Our mission is to help homeowners find the coverage they need for a price that fits their budget, and we do so through insurance experts and the top providers in the country.
Why not let us gather multiple quotes for you to compare all in one place? You’ll see the best policies with affordable monthly premiums and feel better-equipped to decide on a homeowners insurance company and policy. Contact us today to start your search and get answers to your most pressing insurance-related