Earthquakes, floods, fires, robberies, and vandalism — nobody wants to believe it, but any and all of these things could happen. If a home owner is looking to purchase a new house or apartment, getting homeowners insurance to protect dwelling, belongings, and even cover medical and legal fees in the event of an accident or other uncontrollable event is an essential step. But navigating the various insurance companies and coverage options can be tricky and complicated.
Is Homeowners Insurance Actually Necessary?
Given all of the paperwork and research it entails, one may be asking himself if home insurance is even necessary, but getting home insurance is a definite yes and this guide is here to help new home owners to make the right choices. Life happens and no amount of caution or planning will help anyone avoiding the inevitably. According to the Insurance Information Institute, 1 out of every 20 homes will need to file a claim every year¹. Experiencing any kind of damage to a home is difficult enough, but it will be exponentially worse if it is not covered by an insurance. Nobody wants to get caught in the worst of situations with the least coverage. It’s important to think ahead and make sure everything is covered before it happens.
What are the Most Reliable Home Insurance Companies?
According to U.S. News, the Most Reliable Homeowners Insurance Companies of 2020 are Amica, Erie Insurance, Auto-Owners Insurance, Allstate, and USAA². But there are also other companies, such as Travelers, Metlife, and Statefarm, which consistently rank well across the board. Let’s break down the results of 3 of the top homeowners insurance companies to see why.
According to one review, Amica is one of the most renown insurance companies because it has incredible customer service, and ranks well when it comes to the diversity of coverage options it offers, a helpful claims experience, and clearly outlined and organized billing³. The downside of Amica is that, compared to other insurance companies, it ranges on the more expensive side. Moreover, it is not available in every state.
If a more affordable insurance is needed, Allstate is here to provide the easiest ways to avoid spending on insurance premiums. They are especially helpful when it comes down to bundle multiple types of insurance policies with them.
Who is not already be familiar with State Farm’s hilarious television commercials. Even if the final decision is not to go with this company, the commercials are well worth a quick search on Youtube. Not only does State Farm have great commercials, they also provide extensive coverage for homeowners insurance and are known for the user-friendly experience they provide. This includes giving their clients access to some of the nicest educational resources on insurance policies that can be find in the industry.
What does Homeowners Insurance Cover?
Once the final decision about the company is made, it is time to decide what exactly is needed to covered. Is the house in an area that is prone to flooding or earthquakes? Are there valuable possessions that need to be protected in the policy? If so, we may need to customize the plan to fit the needs. The basic homeowners insurance plan generally only covers 3 things: the dwelling, personal property or possessions, and personal liability.
Damage to the interior or exterior of the house or any attached structures as caused by hurricanes, lightning, fire, vandalism, and any other disasters covered by the policy are included in the dwelling coverage clause. This means that the insurance company will pick up some of the expenses of repairs needed to the home, depending on the square footage of the home and the extent of the damage.
Personal property coverage
If the contents of the house, including furniture and electronics, are damaged or stolen, the insurance company may also be able to pay for some of the replacement expenses. This type of coverage is called personal property coverage, and each insurance company will have a different policy or coverage limit that can be discussed with the representative.
Personal liability coverage
Personal liability coverage is an underrated aspect of homeowners insurance. It may cover the medical expenses, repair expenses and legal fees resulting from accidental damage to someone else’s property. Depending on the policy, it may even cover the damage incurred by the belongings – such as a pet – on another person.
If greater coverage than what is offered by the basic plan is required, it is always possible to request specific add-ons. These additions vary by company and can include additional living expenses, earthquake insurance, other structures coverage, guest medical protection, and flood insurance, among others.
We cannot stress enough how important it is to get home insurance. Be sure to do some research on the different companies and the various types of coverage they propose until finding the one that is right. Protect people, belongings and the home with homeowners insurance before it is too late.
 Insurance Information Institute. “Facts + Statistics: Homeowners and Renters Insurance.” 2020. https://www.iii.org/fact-statistic/facts-statistics-homeowners-and-renters-insurance
 Jim Travers. “Best Homeowners Insurance Companies of 2020.” U.S. News, 4 October 2019. https://www.usnews.com/360-reviews/homeowners-insurance
 Pat Howard and Fabio Faschi. “The Best Homeowners Insurance Companies in 2020.” Policygenius, 6 January 2020. https://www.policygenius.com/homeowners-insurance/best-homeowners-insurance-companies/