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Protect Your Biggest Investment with Homeowners Insurance

At O1ne Mortgage, we understand that your home is likely your most significant investment. Homeowners insurance is essential to safeguard that investment, whether your home is damaged by a storm or someone gets injured on your property. Rates and coverage can vary significantly between insurers, so it’s crucial to find the right policy for your needs. Here’s a comprehensive guide to help you navigate your options.

1. Understand What’s Covered

Most standard homeowners insurance policies include the following types of coverage:

• Liability Protection: Covers injuries or damages caused by you or your family members.
• Dwelling Coverage: Covers the cost of repairing or rebuilding your home.
• Personal Property Coverage: Covers personal belongings that are stolen, damaged, or destroyed.
• Additional Living Expenses Coverage: Covers costs if you need to live elsewhere while your home is being repaired.

Standard policies typically cover events like smoke, windstorms, hail, lightning, theft, falling objects, and certain types of water damage. However, they usually do not cover damage caused by earthquakes or floods, for which you would need additional policies.

2. Estimate Your Coverage Requirements

Most mortgage lenders require homeowners insurance, and even if your home is paid off, it’s a wise investment. Consider the following when determining how much coverage you need:

• Rebuilding Costs: Calculate the cost to rebuild your home, excluding the land value.
• Replacing Belongings: Take an inventory of your belongings and estimate their value.
• Additional Living Expenses: Consider costs like temporary housing, meals, and commuting if you need to live elsewhere during repairs.

3. Consider Add-On Coverage

Sometimes, a standard policy isn’t enough. Additional coverage options include:

• Dwelling Extras: Extended replacement coverage and inflation add-ons can help cover rising costs.
• Liability Extras: Umbrella liability policies provide higher coverage amounts.
• Personal Property Extras: Extend coverage for high-value items like electronics and jewelry.
• Specialty Insurance: Consider policies for floods, earthquakes, mudslides, and sinkholes if you live in prone areas.

4. Compare Home Insurers

In 2020, the average homeowners insurance premium was $1,311. To find the best deal, gather quotes from multiple insurers. Key information to collect includes:

• The year your home was built
• Your home’s square footage
• The age and material of your roof
• Details of any detached structures
• Information on home improvements

Compare premiums, deductibles, and coverage amounts to choose the right insurer for you.

5. Find Ways to Save

Here are some tips to reduce your homeowners insurance premium:

• Bundle Policies: Combine home and auto insurance for discounts.
• Increase Your Deductible: Higher deductibles can lower your premium.
• Enhance Home Safety: Install security systems and other safety measures.
• Limit Claims: Only file claims when necessary to avoid higher premiums.
• Maintain Strong Credit: Good credit can help lower your insurance costs.

The Bottom Line

This checklist covers the essential steps for finding the right homeowners insurance policy. Determine your coverage needs, compare insurers, and look for discounts. Remember, your credit health can impact your insurance rates, so take advantage of free credit resources to maintain a good score.

For any mortgage-related needs, call O1ne Mortgage at 213-732-3074. We are here to help you make informed decisions about protecting your home.

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