Understanding Homeowner’s Insurance

You’ve found a home and are ready to sign, but you find out that you need homeowner’s insurance. Why do you need to buy coverage? Reasons to Buy:

  1. Property coverage – covers the physical structure of your home and your personal property if anything is damaged
  2. Liability coverage – this protects you if someone who isn’t covered under your policy is injured or killed, or their property is damaged while on your property. Your policy will cover your legal responsibility.
  3. Mortgage lender requirements – Most bank lenders insist you have a policy as long as you have a mortgage to protect their interest

The average annual home insurance premium in the U.S. as of 2013 was $1,096 a year. But prices can skew much higher or lower depending on location. In Oregon, Utah and Wisconsin, the three most affordable states for home insurance, rates were between $568 and $665 a year. Meanwhile, in the three most expensive states, Florida, Texas and Louisiana, annual average rates were all over $1,800. (Source: Insurance Information Institute)   View Plans