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The Basics of Homeowners Insurance
The Basics of Homeowners Insurance
Homeowners insurance can help financially protect you and your family from property damage caused by fires, extreme weather, crime, and other risks specified in your policy. A home insurance policy can also help protect you from liability claims if someone is injured on your property.
Unfortunately, shopping for insurance isn't as simple as looking at a few price tags and purchasing the cheapest one. Homeowners' coverage can vary by insurer, and your policies' coverages can be the difference in whether a claim is paid or not. Before picking out a type of homeowners' insurance, it is crucial to identify what your home insurance needs are.
When purchasing a homeowners insurance policy from CPK Insurance, our mission is to help evaluate your home insurance needs and create a comprehensive homeowners policy tailored to your needs. We have carrier partnerships with the nation's top home insurance companies allowing us to maximize savings and value for homeowners.
What is typically covered under Homeowners Insurance?
Although home insurance is not generally required by law, most lenders require borrowers to have home insurance coverage in place to protect their financial interests. Homeowners can benefit in many ways by protecting their homes with a comprehensive home insurance policy. When purchasing a homeowners policy for your home, it’s important to understand what is covered and what is not. Homeowners' insurance can include the following coverages:
Structural Damage Coverage
Dwelling coverage is the portion of your policy that helps protect your home. It typically covers repairs or rebuilding costs if a covered event damages your home. Most dwelling coverage policies will also cover detached structures on your property, such as a shed or garage.
Personal Property Coverage
Personal property coverage helps cover your home's possessions if they are damaged or stolen in an insured accident. There is usually a limit on the amount you get reimbursed depending on the agreement on the policy. It is advisable to add a scheduled personal property endorsement to your policy for high-value possessions such as jewelry, antiques, and paintings.
Liability Coverage
One of the most critical aspects of homeowners insurance is liability coverage. This can help protect you financially if someone is injured on your property or if you're sued for damages. Liability Coverage can also help cover the costs of repairs if you accidentally damage someone else's property.
Loss of Use
Additional living expenses coverage helps cover the costs of temporary housing and other living expenses if your home is uninhabitable due to damage. This can include hotel stays, restaurant meals, and more.
What is typically covered under Homeowners Insurance?
What is not covered by Homeowners Insurance?
Apart from knowing the types of coverage offered, it is also essential to understand what is not covered when choosing a homeowner's insurance policy. Some common exclusions on home insurance include;
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Flooding
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Infestations
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Water backup
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Vacant properties
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Earthquakes
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Mudslides and landslides
You will need to purchase a separate policy to protect your home from natural disasters like floods and earthquakes. Water backup coverage is typically excluded also; you can add this coverage to your home insurance policy as an endorsement.
What is Not Covered By Homeowners Insurance?
How are Home Insurance rates calculated?
Multiple factors go into calculating home insurance rates. The most important factor in calculating a home insurance rate is the replacement cost value of your home. Usually, the more valuable your home is, the higher the premium will be. Insurance companies also consider the location of the home when determining rates. Homes in high crime rate areas or areas with frequent natural disasters will typically have higher premiums than those in lower-risk areas. The year built and condition of the home are also important considerations.
Many insurance companies consider your roof's age because the most common home insurance claim is a damaged roof. Insurance companies also look at the history of claims made by the homeowner when calculating rates. Those with a history of filing frequent or large claims will pay higher rates than those who have never made a claim. By understanding how insurance rates are calculated, homeowners can be better prepared when shopping for coverage that fits their insurance needs and budget.
How are Insurance Home Rates Calculated?
How to save on Home Insurance
It’s important to remember that home insurance rates are constantly changing, especially in today’s market. When purchasing a home insurance policy from us, you can rest assured during a volatile insurance market. Our expert insurance advisors help find the best value for your coverage every renewal to ensure you receive the most effective home insurance policy. We leverage industry expertise, available market data, and our industry-leading carrier partners to provide exceptional value to homeowners.
It helps to understand what discounts you could be eligible to receive. Home insurance providers have various discounts they offer, such as:
Bundling discounts
This discount applies when you bundle your home insurance with another insurance policy from the same carrier.
Protective device discounts
If your home has a fire alarm or security system, you may qualify for this discount.
Military discounts
Homeowners in the military or who previously served are eligible for this discount.
Senior discounts
Homeowners who are 65 and older can receive this discount.
Claim-free discount
Some carriers will offer a discount if you have not filed a claim in the last 3-5 years.
How to Save On Home Insurance
How CPK Insurance Services can help you save on Home Insurance
Our team of experienced agents is dedicated to helping you find solutions that best fit your unique needs, budget, and lifestyle.
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Insurance all in one place
Purchasing your homeowners and auto coverage from the same insurer can provide savings of up to 25% overall!
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Compare and Save
We compare multiple quotes from our network of top-rated insurance carriers to maximize your coverage and savings.
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Automated Savings
When you purchase a policy from us, we review your policy every renewal to ensure you receive the best-valued coverages.
Protect what matters most
With a wide range of services and competitive prices, CPK Insurance Services offers an incomparable combination of personalized advice and quality service.
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