Home Insurance

Updated: Jul 21, 2020
Advertiser Disclosure
× Advertiser Disclosure

Market Pro Secure® is an independent payment card comparison service supported by advertisers, a complete list of which can be seen in our Editorial Guidelines. Even though some of these advertisers are financial product providers and credit card issuers, our paid partnerships don't affect card ratings or the Best Card Picks on our website. We don't post any content that is provided or commissioned by any of our partners. However, our paid partnerships may affect how and where products appear on our site, including the order in which they are presented within listing categories. This order may also be affected by our website rules, as well as the likelihood of the applicant’s credit approval. We can't offer any warranty for the accuracy of the credit card information we share on our website, even though we do our best to keep the Terms and Conditions, rates, and other credit card details up-to-date. For more accurate information, click "APPLY NOW" to get transferred to the credit card issuer's official website. Market Pro Secure® doesn't include all available payment cards in the marketplace.

Search, compare, & get FREE quote from best home insurance providers online.

Statistics show that in the US one in every three of us will be burgled at some time in our lives. It is a serious mistake to think that bad things only happen to others, yet about a quarter of households are not protected by any form of home insurance. When you include the risk of other potentially costly events such as fire, flood or storm damage it is clear many people are exposing themselves to the risk of substantial financial loss. Don't wait until it is too late.

See Home Insurance Suggestions Summary
Editor's suggestion: Home Insurance - Dec 01, 2020

In case of an emergency or an incident, maintaining continuous coverage of your property seems like the best way to protect your home and everything in and around it.

Your home is your most precious possession, and it would be most advisable to get comprehensive home insurance to make sure you’re covered at all times.

With that in mind, here at Market Pro Secure, we felt obliged to give you all the details regarding home insurance, what it covers, and how it benefits you.

What Is Home Insurance?

Home insurance is a policy that includes a range of selected packages of insurance coverage. That means that your home insurance policy covers your property from all damage.

It also provides coverage for legal responsibility and liability for any property damage and injuries sustained by other people that were caused by policyholders or their families.

This coverage also includes any damage caused by pets. In case of any natural disasters or environmental perils that could cause damage to your property, your home insurance policy has you covered.

But, there are some exceptions – poor maintenance, earthquakes, or flooding aren’t covered by standard home insurance policies.

However, it’s possible to protect your property from the aforementioned natural disasters by purchasing an additional, separate policy. As for the maintenance-related problems, those are the homeowners’ responsibility.

4 Types of Home Insurance Coverage

There are four essential types of insurance coverage that a standard home insurance policy includes.

1. Coverage for home structure

If your home gets destroyed or damaged by lightning, hail, hurricane, fire, or any natural disaster stated in the policy, your home insurance pays to rebuild or repair your home.

However, this coverage doesn’t include any payment for damages caused by routine wear and tear, earthquake, or a flood.
If you have any additional structures on your property, such as a gazebo, a tool shed, or a garage, these structures are also included in your home insurance policy.

2. Personal belongings coverage

All personal items such as sports equipment, clothes, furniture, jewelry, and everything else that you own; this is all covered by your home insurance policy, in case they are destroyed by insured disasters or stolen. The standard coverage provides for 50% to 70% of the amount on the home structure, and it also includes coverage for off-premises.

Off-premises coverage protects your belongings anywhere in the world unless you’ve stated otherwise. While personal belongings coverage covers for expensive items like silverware, furs, and jewelry, there is a dollar limit in case of theft.

If you want to ensure these items in full, you can purchase a special personal belongings floater that allows you to ensure your items to their full value.

Standard home insurance also covers scrubs, plants, and trees, and the general coverage goes up to $500. Perils included in the policy are falling aircraft, riot, vandalism, explosion, lightning, fire, and theft, while disease and wind damage aren’t included.

3. Liability protection

In case of any property damage or bodily injury caused to other people by policyholders, their families, and household pets, liability protection covers against any possible lawsuits.

The liability coverage pays for the court awards and the cost of defending the holder of the insurance policy in court. It’s important to mention that the amount of coverage goes up to the policy limit.

The liability coverage extends beyond the home and provides protection anywhere in the world. The liability limit is usually around $100,000, although it can be higher in case you choose to go with excess liability protection. This includes higher liability limits as well as claims for slander and libel.

4. Additional living expenses coverage

In case your home becomes inhabitable due to damage from any insured disaster like a storm or a fire, and you’re forced to live away from your property, the additional living expenses are covered by your home insurance policy.

It includes all additional costs like restaurant meals, hotel bills, and all other living expenses that you had during the rebuilding phase of your home. The amount of additional living expenses coverage differs. Not every insurance company offers the same coverage.

Types of Homeowners Insurance Policies

While there’s a fair standard for different types of homeowners insurance policies, individual companies and countries offer insurance policies that differ in details. These policies are considered deluxe or standard, depending on what additional coverage they provide.

Every homeowner has a number of different insurance solutions to choose from. The most popular home insurance policy that most homeowners prefer is the HO-3. It combines three types of insurance coverage:

  • Personal liability
  • Personal belongings
  • Home structure coverage

What matters most is that HO-3 also includes protection from different perils or disasters. This protection provides coverage from:

  • Lightning
  • Fire
  • Hail
  • Windstorm
  • Explosion
  • Civil commotion
  • Riot
  • Aircraft damage
  • Vehicle damage
  • Smoke
  • Malicious mischief
  • Vandalism
  • Theft
  • Volcanic eruption
  • Falling object
  • Weight of sleet, snow or ice

The following damages are also included:

  • Accidental overflow or discharge of steam or water from within an automatic fire-protection sprinkler system, air conditioning, heating, or plumbing, or any other household appliance.
  • Accidental or sudden bulging, burning, cracking, or tearing of the automatic fire protection, air conditioning, or hot water or steam heating system.
  • Freezing of a household appliance, fire protection, air conditioning, heating, or plumbing system.
  • Accidental or sudden damage from a man-made electrical current.

HO-3 home insurance is usually purchased by homeowners who rent their living premises to renters. They use this insurance policy to cover the risks that might arise from renting. Aside from HO-3, there’s HO-8 that covers older homes, HO-2, that comes with limited coverage and is more aimed toward mobile homes, as well as HO-1, which isn’t widely available.

Renters Insurance Policy

If you are renting the home you live in, there is a special insurance policy – HO-4. It includes all the perils we mentioned before, and it also covers the personal belongings of a policyholder. In case the policyholder or dependents cause any damage to other persons, the renter’s insurance policy provides personal liability coverage.

Cooperative Units and Condominium Insurance Policy

Those persons who own cooperative units and condominiums can purchase the HO-6 home insurance policy. It includes protection against all insured perils and disasters, personal liability coverage, as well as coverage for the co-op units and condominium structures.

Both the HO-4 and HO-6 include additional living expenses.

Levels of Coverage

When it comes to the level of coverage, there are three coverage options to choose from:

  • Actual cash value – provides the coverage needed to replace possessions or the home. This coverage level is reduced for a deduction for depreciation.
  • Replacement cost – provides coverage for repairing or rebuilding the home, but it can also cover for the expenses of replacing possessions without the deduction for depreciation.
  • Extended or guaranteed replacement cost – provides the highest level of coverage. It includes all costs related to rebuilding the home before any insured disaster or fire damaged it or made it inhabitable.

This level of coverage extends beyond the policy limit, which covers any unpredicted and unexpected situations that might happen during the rebuilding.

These situations include:

  • The shortage of materials needed for rebuilding
  • Sudden increases in construction costs
  • Other unexpected situations

This level of coverage doesn’t cover for the expenses of home improvement or upgrading according to the current building standards and codes.

However, it is possible to include these additional expenses by purchasing the additional policy that directly addresses these additional costs.

Many home insurance companies offer extended home insurance policies that cover the expenses of rebuilding the home even over the limit. Still, this coverage covers only a certain percentage over the limit.

Benefits of Home Insurance

In case you’ve experienced loss or damage to your home, and you need to repair or rebuild it, your home insurance covers the expenses. The best thing about home insurance policies is that they are generally flexible and offer a wide range of covers that are designed to cover many different and individual needs of policyholders.

You can choose to cover only your home or your contents. If you ask us at Market Pro Secure for advice, we’d recommend that you combine the two to ensure your peace of mind. If you choose to do so, here is how insuring your home and contents benefits you:

  • You can enjoy your peace of mind knowing that 95% of claims are covered by your home insurance policy.
  • You can customize and tailor your home insurance policy to better suit not only your needs but the needs of your family.
  • The combination of home and personal belongings insurance offers a high level of flexibility. There’s a wide range of different options to choose from.
  • You can spread the cost of your policy on a monthly basis without any additional or extra charges.
  • If you need to make a claim, the insurance companies offer 24/7 customer support that can back you up at any time.

Best Home Insurance Companies

  • Allstate – perfect for new homebuyers
  • Amica – most excellent customer service
  • State Farm – personalized online quote
  • Nationwide – replacement coverage you can count on
  • The Hartford – for green homes
  • Liberty Mutual – full-time inflation protection. RELATED: LiMu Home Insurance Review
  • Progressive – protect your boat
  • USAA – best for war veterans, military members, and their families

Hoem Insurance Offers Recap

Home Insurance FAQ. What People Ask About Home Insurance

Can I get home insurance if the house isn’t in my name?2020-07-21T01:44:07-05:00

No, the house needs to be in your name. Home insurance companies don’t issue home insurance policies to people who don’t own their homes. There are other coverages that provide protection for people who don’t own the home they live in.

If you want the home insurance policy, the home needs to be in your name.

What’s the most recommended home insurance coverage?2020-07-21T01:58:27-05:00

Minimal home insurance coverage provides liability coverage up to $100,000 in most cases. At Market Pro Secure, we recommend that you go up to $500,000 if you can.

What’s the home insurance procedure when buying a house?2020-07-21T01:43:02-05:00

Most homeowners add monthly insurance charges onto their mortgage check. The lender takes care of your property taxes and insurance premiums by withdrawing the funds of your escrow account. The thing you need to cover is one year of insurance at the closing.

What happens if I want to change the home insurance company?2020-07-21T02:02:33-05:00

If you want to change the home insurance company, the best way to do it is when the current policy comes to an end, although you can do it anytime. You can also update your insurance policy when making home improvements.

How does home insurance affect my credit score?2020-07-21T01:59:40-05:00

Home insurance doesn’t affect your credit score in any way. Home insurance companies make a type of inquiring known as soft pull that doesn’t affect credit scores. But you’ll see them on your personal credit reports.

Is it against the law not to have home insurance?2020-07-21T02:00:41-05:00

No, it isn’t, but the answer is somewhat complex. While you can own a house without home insurance, the situation changes if you finance your property with a loan or mortgage.

In this case, the lender will require you to purchase home insurance to ensure protection against damage caused by natural disasters, fires, and other unforeseen circumstances.

Is there any way to avoid paying home insurance?2020-07-21T02:01:45-05:00

You can avoid paying home insurance in several ways:

  • Reduce your home purchase for 20%
  • Lender-paid mortgage insurance
  • VA loan
  • Go with credit unions that provide benefits for qualified applicants
  • Piggyback mortgages
  • Physician loans
Is it possible to get home insurance if I don’t own a house?2020-07-21T01:45:12-05:00

Yes, but it isn’t that simple. You can be a homeowner without home insurance but, if there is a third party that has a financial interest in your property, such as a loan holder or mortgage, you will be required to have home insurance.

Market Pro Secure® has made it very easy to find the best credit cards for you. All you need to do is find the cards you like, click "Save Card", and then compare them side-by-side.