Having a homeowners insurance is a necessity. It guards your property and home against theft, damage, or accidents. Moreover, every mortgage company will need you to have insurance coverage for the fair or absolute value of the property, and will not offer a loan without proof of it. This is why a homeowners insurance is a safety net everone must have. Below we will take you through some more benefits and the top providers.
Benefits
Guards your primary residence
One of the most significant advantages of getting homeowners insurance is that it safeguards your property against losses due to extensive deterioration. This covers major and minor damage and total replacement costs.
Guards your detached structures
This includes structures like fences, sheds, garages, dog houses, etc. Typically, the insurance covers these detached surfaces at up to 10 percent of the coverage limit of the primary property. However, you can customize the policy if you seek additional coverage here.
Covers your home’s contents
A homeowners insurance offers coverage to all furniture, electronics, appliances, and other personal property inside the home provided that they’re damaged by a peril that’s covered. Depending on your coverage, you will be reimbursed in part or whole in the event of lightning, fire, hail and windstorms, vandalism, theft, and more. This is one of the most important homeowners insurance benefits.
Liability coverage
It is a primary reason why one needs a homeowners insurance. If someone gets injured on your premises, the hospital bills could cost thousands of dollars or more. However, a homeowners insurance will guard you against expensive lawsuits.
Loss of use insurance
In case your home is being rebuilt or repaired, you may have to move out. This may amount to unnecessary travel, food, and hotel expenses. However, your homeowners insurance will offer coverage up to the loss of use component limit mentioned in the policy.
Best homeowners insurance providers
Amica
It offers two policy types – Platinum Choice® Home Coverage and the Standard Choice Plan. The former covers everything included in the Standard policy and even the optional coverage, such as protection against water damage, reimbursement for the cost of replacing personal belongings, and broader coverage for business property and computer equipment. Both types have the option of paying dividends. The policy that pays the dividend returns a percentage of your annual premium. However, the downside is these homeowners insurance providers are costlier than those that do not pay dividends.
USAA
It has a low overall premium, robust coverage options, and top-notch customer service. Moreover, it offers coverage to veterans, active-duty military personnel, or their immediate families. USAA also offers unique add-ons like coverage for military uniforms for deployed or active duty policyholders. They are available in all states as long as policyholders meet their eligibility criteria. You can get their homeowners insurance quotes online. Though USAA may seem like a better option, one should use a homeowners insurance calculator to compare prices with the other policies to see which is a better fit.
Chubb
Chubb offers more coverage options than usual. One of their standout attributes is the HomeScan, which uncovers issues with the home that demand immediate attention. Their standard policy offers replacement value for your personal belongings and replacement cost coverage for your primary residence. It means that following a covered disaster, if your home costs more to rebuild, Chubb will pay out more than your chosen dwelling limit to cover the cost.
