A home for sale is one of the biggest investments that you'll ever make. Naturally, you'll want it to be protected in the case of unforeseen incidents. Before you get homeowners insurance, learn what's typically covered and how to save as much money as possible.
It's important to understand what is and is not covered by your homeowners policy. Standard H-3 homeowners insurance covers four areas:
- dwelling—your home is covered from things like fire and smoke, wind, lightening, and hail.
- personal property—electronics, furniture, and clothes will be covered after an accident.
- liability—liability covers any injuries that occur on your property.
- other structures—garages, sheds, and fences are also covered under typical homeowners insurance.
Things that will not be covered under a standard homeowners insurance policy include earthquakes, water damage, maintenance, identity theft, war, and bombs. If you do want additional coverage, talk to your insurance agent to see what options they might have.
Save on Homeowners Insurance
Homeowners insurance can be expensive, but you can save as much money as possible by following these simple tips.
1. Home improvements. Certain home improvements can lower your insurance costs. Generally speaking, aesthetic improvements won't help lower your premiums, but improvements to the pipes, wiring, roof, and other substantial parts of the home can lower costs by making the home safer and less likely to experience severe damage.
2. Raise the deductible. The deductible is the amount of money you pay when you file a claim. You pay the deductible, then the insurance company covers the rest. Raising the deductible will lower your monthly payments. Just make sure that the deductible is manageable enough for you if and when something does happen.
3. Do you qualify for any discounts? You may qualify for discounts that you didn't expect. Examples of possible discounts include:
- age—seniors often get discounts on their coverage
- gated-community—gated communities are considered safer and can get you a discount
- no claims—if you haven't filed a claim in over ten years, you may be eligible for discounts
- homeowners association—joining a homeowners association may cost dues, but it could save you on insurance
- nonsmoker—not smoking can mean savings
- water sensor—having a water detector can prevent leaks and floods, which encourages the insurance company to give you savings
4. Bundle up! Combining your auto and homeowners insurance will generally save you 5–15% off of your monthly premium. It will also make organization much easier.