By: Andrea Duke

Perhaps you’ve wondered, “Do I really need homeowner’s insurance?” While homeowner’s insurance is not required by law, if you have a mortgage, your lender will require you to insure the home and protect their investment. Your home is a major investment! If something unthinkable were to happen, we can all agree that you’d want the opportunity to protect that investment by rebuilding it or repairing it, if necessary. A typical homeowner’s policy (HO-3) is comprised of the following coverages:

Dwelling Covers damage to the dwelling (typically enough to replace/rebuild you home).

Other Structures Covers stand-along structures such as a detached garage or shed. 

Personal Property Covers replacement of your personal belongings.

Loss of Use Helps pay for temporary/additional expenses while your home is being repaired. 

Medical Payments Covers medical expenses for someone injured on your property

Liability Covers you if someone is injured on your property unintentionally or through neglect. 

Deductible Specific dollar amount you pay out of pocket when making a claim.

The cost of a homeowner’s policy can vary significantly depending on the size, location, and cost to rebuild the home. Consult with your local insurance agent to determine which carrier is best to insure your home.

Are you a renter? This is a nifty little policy! Renters insurance, or tenant’s insurance, is designed to protect tenants living in a house or apartment owned by the landlord. Similar to a homeowner’s policy it covers personal property coverage (however, this amount is determined by you, the renter), loss of use (temporary/ additional living expenses), liability coverage (which may protect you from paying out of pocket or being sued for injuries or damage to other people’s property). A deductible will also be required. This type of policy is generally very affordable, usually only costs around the same amount as a fancy café drink per month, but is well worth the money and protection it provides.

Be sure to discuss with your insurance agent which perils are covered, and which are not covered, with any policy. Also, be sure you know your deductible amount to determine whether it makes sense to file a claim with the insurance company or not.