Home Insurance

Homeowners Insurance Prices 2020

Homeowners insurance is especially a must if you own a home that you’re paying a mortgage for. On paper, a homeowner insurance policy covers repairs and reconstruction of your home if it is damaged by causes that are covered in your policy. Most homeowners insurance policies cover fire, theft, smoke, vandalism, natural disasters like lightning, hail, or wind.

While floods and earthquakes are generally not covered, you may get it on your policy. If you want to get flood coverage, you’ll have to get it through the Federal Emergency Management Agency’s National Flood Insurance Program. The homeowners insurance not only covers the physical structure of your home but your belongings as well.

You can also secure your furniture and appliances with homeowners insurance. But just like how floods and earthquakes aren’t covered in most policies; jewelry and valuable collectibles aren’t generally covered.

Other Things Covered by Homeowners Insurance

Other than the physical structure of your home and your belongings, homeowners insurance can be a lot helpful. Most policies offer liability coverage. What this means is that if someone outside of your family gets injured, you’ll be safe legally. Let’s say Tom was in your home as a guest and got injured and decided to sue you.

In such occurrences like this, the legal fees and medical expenses that are subjected to you will be covered. This coverage is up to $1 million just like in renters insurance.

Homeowners Insurance Policy Costs

Just like renters insurance, the location is the key point that determines how much you’ll pay for your homeowners insurance. So rather how big your house is, where it’s located is much more important. The location is very important because of both the crime rate and the likelihood of natural disasters afflicting the area.

So if you live in an area that has a high crime rate, you are going to pay more compared to someone who lives in a quiet suburb. On top of this, the cash value of the policy makes a big difference in how much you pay in homeowners insurance.

As of early 2020, Americans pay about $100 on average for their homeowners insurance policies. But again, the average c shouldn’t be taken into serious consideration. There is a huge shift even in the same cities how much the homeowners insurance costs.

One study found in Oregon that the cheapest homeowners insurance was roughly $600. The most expensive one, on the other hand, was $2,500. So even the locations within the states matter to a degree to shift the prices significantly.

Deborah Ann

Deborah writes everything from federal tax law to local governments. Her writings cover a broad range of government topics. With a little bit of seriousness to the words, everything is simplified to Futufan readers.

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