Frequently Asked Questions about Home Insurance Rates
Here are the answers to the most commonly asked questions about home insurance rates.
Can I own a home without having home insurance?
Home insurance is not like car insurance, which most states require in order to drive legally. You can indeed own a home without having home insurance coverage. However, if you finance your home, your lender will require that you have home insurance in order to protect their investment in the event that your home is damaged in a disaster. Most lenders require that you show proof of home insurance upon closing on your mortgage loan.
What does a home insurance policy cover?
Typical home insurance policies will cover fire, lightning, windstorms, hail, riots, smoke, damage caused by vehicles, theft, falling objects, and damage from the weight of snow, sleet, or ice. Each insurer is different, so ask your agent for specific information.
Does home insurance cover flooding?
No, the home insurance rates you pay for a standard policy will not cover flood damage. You will need to purchase separate flood insurance if you live on a flood plain.
Does home insurance cover earthquakes?
No, home insurance does not cover earthquakes. You will have to buy earthquake insurance if you live in a seismically active area.
Can I get home insurance if I rent my home?
Yes, you can get a form of property insurance called renters insurance. The home insurance rates for renters policies are usually significantly cheaper than homeowners policies because they primarily cover your possessions and your liability. The structure of your home is covered by your landlord's insurance policy.
What's the difference between non-renewal and cancellation?
Non-renewal of a policy refers to a decision you or your insurer makes to not renew the policy when it expires. You might want to switch insurance companies, or your insurer may have decided to drop that type of insurance from its line of products, to name a few examples. Cancellation happens when you fail to pay your home insurance rates and/or you have committed fraud or seriously misrepresented information on your application.
