If you are a homeowner, you already know that homeowner's insurance is essential to protecting your investment. But what does it cover, and how can you get a discount on your policy? Here's what you need to know about homeowner's insurance and tips on how to save money.

What Is Homeowner's Insurance?

Homeowner's insurance provides financial protection if the home or its contents are damaged or destroyed. It also provides liability coverage if someone is injured on your property. In addition, some policies may also cover additional living expenses if you are unable to live in your home due to damage from a covered event. The lender requires homeowner's insurance if you have a loan on your home.

What Does Homeowner's Insurance Cover?

Most policies will cover damage caused by fire, lightning strikes, windstorms, hail, explosions, theft or vandalism, and other losses. It will also cover any damage caused by certain types of water, such as burst pipes or overflowing toilets. However, it does not typically cover damages from floods or earthquakes unless you purchase additional coverage for those events. In addition, homeowner's insurance typically covers replacement value, meaning you are reimbursed for replacing damaged items with new ones at today's prices, instead of the prices you paid ten years ago.

What Is Not Covered?

Homeowner's insurance does not typically cover any damages caused intentionally or by normal wear and tear. In other words, if you have a home with an older furnace that decides to stop working, you cannot file a claim on homeowner's insurance for it. Nothing out of the ordinary caused your furnace to stop working. It was just old.

Additionally, while homeowner's insurance does cover items inside your home, you may need to purchase a special rider to your policy for unusually valuable items, like collectible artwork, a fur coat, or diamond jewelry.

How Can You Get a Discount on Homeowner's Insurance?

While the cost of homeowner's insurance varies from state to state and between insurance companies, there are several ways to get discounts on homeowner's insurance, including:

  • Having smoke detectors
  • Adding a security system
  • Installing storm shutters in hurricane-prone areas
  • Installing a metal roof
  • Bundling multiple insurance policies with the same provider
  • Setting up auto-withdrawal for monthly premiums payments

Additionally, many providers offer discounts for customers who have been with them for a long time without filing claims or who pay their premiums annually instead of monthly.

Homeowner's insurance is an important part of protecting your investment as a homeowner. It will reimburse you if your home is damaged and protect you if someone is injured on your property. Understanding what homeowner's insurance covers and seeking out available discounts can help ensure that your home is properly protected while saving money.

For more information, contact a local company, like Ronald H. Krupa Insurance Agency.