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

What exactly is home insurance? A typical policy will cover repairs or even reconstruction of your home if it has been damaged by common hazards such as fire, lightning, vandalism, etc. If you live close to a body of water, you can also get flood coverage. Most home insurance companies offer coverage that will pay for medical and legal expenses if someone other than you or a family member is injured in your yard or home.

Some indoor items are protected, such as your furniture, appliances, walls, and windows, but items such as artwork, jewelry, and other collectibles are not covered — at least in a general policy. Normally you would need to request special coverage for such items. If you have an expensive collection of art, antiques, jewelry, etc. that you want coverage for, check how each homeowner’s insurance company covers it when comparing quotes.

Another thing to consider is the cost of local hotel rates, or the costs associated with having to live with a family member should your home become unlivable for any reason for any period of time. Maybe it will be repaired or even rebuilt. Would it be worth having cover in your policy to help with the extra cost of living if you need to stay elsewhere? Or do you have family or a safe place to stay nearby and are convinced that those costs won’t be much.

The importance of home insurance company location

Location, of course, plays a big role in how much home insurance companies charge you for your payments. It will be a big factor whether you like it or not, whether you live in an area vulnerable to many natural disasters. However, that doesn’t mean you can’t afford it. You may be able to get discounts if your home has weatherproof properties. Even with a sprinkler system and an alarm system you can go a long way to save.

What does your bank or mortgage lender ask? You may only need sufficient coverage to pay off the mortgage, and not necessarily to repair or replace the home. If you’ve already paid off the mortgage, calculate the cost of NEW more materials if your house needs to be rebuilt. Don’t think about how much the property is worth now, think about how much it will cost to rebuild every room and whole house. If it’s an older home anyway, would it be better to just have basic coverage and take a risk?

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