Homeowners Insurance 101:  The Secret to saving you money


Shopping for homeowners’ insurance isn’t fun.   There are probably 1,000 different ways you’d like to spend your hard-earned money than by buying home insurance—I get it.  But! If you ever need it, you will be SO glad it’s there! Do you know the #1 reason why people don’t want to buy homeowners insurance?  It’s because they don’t understand what it is they are buying.  it’s not a secret, but it can be a little confusing. Let’s break it down here so you will at least know the basics of what’s included in your policy and hopefully then be armed with enough information to make smart buying decisions for you and your family.

Let’s start at the top:

What does homeowners’ insurance cover?

Generally, a standard homeowners insurance policy comprises four types of insurance products. Each of these products covers a different area of risk:

Dwelling Insurance

Dwelling coverage includes the structure of your house: ceilings, floors and roof. Protection also extends to built-in appliances, an attached garage, and an attached deck.  Generally, dwelling coverage often does not cover your car or a stand-alone garage or shed.

Personal Property Insurance

This insurance covers your personal property, including your furniture, rugs, clothing, electronics, sporting equipment. While this insurance covers stolen items, it does not cover lost items.

While most homeowners’ insurance policies place a strict coverage limit for jewelry, furs, and other big-ticket items, you can purchase a separate insurance product that will reimburse you for the full replacement value of your favorite jewelry and any other luxury items.   Check out my previous blog post about riders to learn more about these types of policies.

Additional Living Expenses Insurance

Also called loss-of-use coverage, this insurance pays for your living expenses, including food and lodging, if your house suddenly becomes uninhabitable. While there is a policy limit on any loss-of-use coverage, some liability limits can be as high as 20% of the dollar amount of your dwelling liability protection.   (Also covered this in another blog post).

Liability Insurance

Liability coverage pays for any lawsuits resulting from an injury sustained on your property by If someone is injured on your property, this insurance pays for your legal bills.

And that’s it!  Your insurance agent can talk you through how much ($$$) of these four areas meet your needs, but at least you’re now armed with enough info to have an informed discussion about your home insurance policy.

As always, we’re here to discuss, if you want to.  Or if you want us to check on coverage and rates for you, we’re happy to do that, too.  Click here to get started.