Selecting Your Homeowners Insurance Policy

What Is Homeowners Insurance? 

Homeowners insurance is a type of insurance that provides financial protection for your home and personal belongings in the event of damage, theft, or certain types of liability claims. In exchange for paying a monthly or annual premium, the insurance company will provide coverage for various types of damages or losses, such as fire, theft, or damage caused by weather events. Homeowners insurance can also provide liability coverage in case someone is injured on your property and sues you for damages. Overall, homeowners insurance helps protect your home and individual property, as well as your financial well-being, in case of unexpected events. 

Coverage: 

There are different types of homeowners insurance coverage, including: 

• Dwelling coverage: This covers damage to the structure of your home. If your home is damaged or destroyed by a covered event such as a fire, storm, or vandalism, your insurance can help pay for the cost of repairs or rebuilding. 

• According to the Insurance Information Institute, most insurance companies will provide coverage for 50% to 70% of the amount of insurance you have on the structure of your home. 

• Personal property coverage: This covers damage or theft of your personal belongings such as furniture, clothing, electronics, and other items. This coverage can help pay for the cost of repairing or replacing your personal property up to the policy’s coverage limit. Personal property coverage is typically a percentage of the dwelling coverage limit but can also be customized based on your specific needs. 

• E.g., if your house is insured for $200,000, there could be up to about $140,000 worth of coverage for your possessions. 

• Liability coverage: This covers legal fees and damages if someone is injured on your property and sues you. Liability coverage can help cover the costs of legal fees, settlements, and judgments that may arise from such incidents. 

• While policies can offer as little as $100,000 of coverage, experts recommend having at least $300,000 worth of coverage, according to the Insurance Information Institute. 

• Additional living expenses coverage: This covers expenses such as hotel bills and meals if your home is uninhabitable after a claim. 

Deductibles: 

A deductible is the amount you pay out of pocket before the insurance coverage kicks in. Higher deductibles typically mean lower premiums, but you will have to pay more out of pocket if you need to file a claim. 

Factors Affecting Premiums: 

Several factors affect the cost of your homeowners insurance premiums, including: 

• The location of your home 

• The age and condition of your home 

• The cost to rebuild your home. 

• The deductible you choose. 

• Your insurance scores. 

• The level of coverage you select. 

What May Not Be Covered: 

We encourage you to talk to an agent to obtain more specific details about what your homeowners insurance may not cover.  

Additional Coverage: 

If you need additional coverage, you may be able to purchase additional endorsements or riders, such as: 

• Flood insurance; 

• Personal article floater insurance for valuable items such as jewelry or artwork; 

• Excess liability. 

Shopping for Homeowners Insurance: 

To find the right homeowners insurance for your needs, connect with an agent who can compare coverage and quotes from multiple insurance carriers for you. 

Remember, your home is one of your most valuable assets, so it’s important to protect it with the right insurance coverage. We’re here to help! Get a quote or find an agent to get started. 

This article is for informational purposes only. You should not act based on this information without first consulting with your insurance agent; if you would like a quote from a Cornerstone Insurance Agency licensed agent, contact us. We disclaim all liability for actions taken or not taken by you based on the contents of this article which is provided “as is.” Cornerstone makes no representation that this content is error-free.