Home Insurance FAQ - Frequently Asked Questions
If you have questions about obtaining a homeowners insurance policy, you've come to the right place. Let's start with the basics:
What is homeowners insurance anyway?
When you buy a home, you want to protect it from many different threats, ranging from fire burglary. This is where homeowners insurance comes into the picture. These types of policies protect your home from a variety of dangers.
Most of these policies provide liability coverage (for such and such) with hazard insurance (wind, fire, flooding, etc.). So a short definition would be: insurance for your home and the items within it.
Are all homeowners policies the same?
No! This is an important concept to understand right from the start. There is no one-size-fits-all approach to homeowners insurance policies. They vary from one provider to another, from one policy to another, and from one geographical location to another.
In addition, an insurance company can "slice up" its coverage in many different ways to meet the needs of its customers. Every policy is different, so you must keep this in mind when conducting your research.
How do I find home insurance?
It's important to shop around when comparing one home insurance company to another. Thankfully, the Internet has made this process much easier. We always recommend that homeowners start online when comparing insurance policies. It's convenient for one thing, and it also allows you to receive quotes from multiple insurance providers at once.
For example, you can click this link to get quotes from leading insurance companies all at once: Shop and Compare multiple Home Insurance quotes for free.
Do I need flood insurance?
Good question. If you live in an area that has been designated a high-risk flood zone (by FEMA), then your mortgage lender may be legally bound to require flood insurance before you can close on the home.
It's also important to realize that flood coverage is not part of the standard homeowners insurance policy, so you may have to purchase it separately. Fortunately, flood insurance is pretty affordable (current costs average around $500 per month). Learn more by visiting FloodSmart.gov.