Homeowners Insurance Coverage

Homeowner insurance coverage address the replacement costs of a dwelling (up to a certain limit) and household goods, typically up to 40% of the basic amount for which the house is insured. The cost of the homeowner insurance policy depends on the risks to be insured against, and are generally grouped into 11 common perils (the most common) and more extensive coverage (the 17 perils), which will protect against just about everything except flooding, earthquakes, and wars. Homeowner insurance coverage for high-risk areas, such as coastline properties, will cost more, as will older properties, or properties that are a long distance from a fire station. Premiums are reduced when the house has demonstrable features that mitigate certain risks; for example, burglar alarms or smoke detectors.

Insurance against damage caused by flooding, hurricanes, and earthquakes can be difficult to obtain in areas prone to these types of events, and you might need to seek out local insurance companies that provide these special policies. These supplementary homeowner insurance policies can be expensive.
You should also be aware that your credit, employment, and personal history can affect your coverage, and the cost of your homeowner insurance premiums. In particular, bad credit can often result in insurance companies deciding to not provide any coverage at all.