You worked hard to become a homeowner, and now you work even harder to protect the investment you’ve made in your house. Homeowners insurance helps take some of the burden away by lowering the amount you have to pay for repairs, replacement and displacement when disaster strikes. Your homeowners policy also goes to work protecting your assets from other factors outside of your control, such as lawsuits and theft.
Every day, residents in Arizona suffer home damage and losses due to perilous events. None expect to lose their homes or belongings, and many wish they had better insurance coverage when the unthinkable occurs. Imagine what you would do in the following scenarios:
- A pipe freezes and bursts, flooding your home and causing thousands in damages
- A fire ravages your home, leaving you and your family with nothing more than the clothes on your backs
- A storm blows a tree over onto your home, displacing your family until it can be repaired
- Thieves steal your precious jewelry, electronics and other valuables while you are gone on vacation
These are just a few examples of the perils you could face as a homeowner. While ownership is risky, the right homeowners insurance policy can significantly mitigate your risks and lower the amount you pay out of pocket.
Types of Homeowners Insurance Coverage
Your homeowners insurance may include:
Coverage for Your Dwelling
Dwelling insurance covers the structure of your house and any unattached structures, such as a detached garage, a fence, or a storage building.
Personal Property Coverage
Personal property insurance helps pay to replace any damaged belongings in your home. This can include furniture, clothing, children’s toys, electronics, kitchen appliances, jewelry, fine art and more.
If a neighbor trips over a water hose in your yard, liability insurance can help cover the medical bills. It can also pay for legal defense fees, lost wages and judgments against you if you are sued.
There is no need to worry about where you will live if your home is suddenly uninhabitable. With displacement coverage, your insurance can pay for a hotel and living expenses while your home is undergoing repair due to a covered event.
It is important to note that the types of accidents covered by a homeowners policy will vary from insurer to insurer. However, most homeowners policies will offer coverage for losses stemming from theft, vandalism, fire, lightning, hail, wind, winter weather, and more. Talk with your agent for more information about the types of events that may be covered under your policy.
Coverage and Premiums
Because your home is likely one of your largest investments, it is important to make sure it is properly insured. There are different ways of protecting your house, and you will typically need to choose between insuring it for the market value or replacement value. The market value covers your home based on its worth when sold, whereas the replacement value assumes the cost you would pay to replace your home as-is.
The cost of your premiums is largely dependent upon the amount of coverage you select for your home, as well as the size of your deductible. The average deductible, which is the amount you must pay out of pocket for a claim against your policy, is often $500 to $2,000, although it will vary by insurer. A higher deductible will generally result in lower premiums, and vice versa.
Be sure to ask your Harnish Insurance Group agent about any discounts that may be available to reduce your insurance premiums. Bundling your homeowners policy with other types of coverage, such as auto and recreational coverage, could result in lower overall premiums. You may also qualify for discounts if you install a home security system, have a claims-free history, or install an impact-resistant roof.