Finance

List of best homeowners insurance companies of 2022

Homeowner Insurance is a type of insurance that is taken by the person to save his or her property from any damage which can occur at any point in life. This can be any kind of manmade damage or natural causes. 

Natural causes are causes that can bring damage to your property. These causes are floods or earthquakes. For these causes, you need to take coverage for these situations which are mostly not given by insurance companies 

In case of natural causes so the area where you live is prone to these circumstances if the insurance company allows this in their policy. The best homeowner insurance companies of this year are as follows.

  1. USAA gives insurance to military members and veterans and their families. They have reasonable insurance costs if you fulfill the criteria
  1. State Farm This insurance company is not available in Massachusetts and Rhode Island. It is a highly rated financially strong insurance company with a 17 percent market share and 19000 local agents.
  1. Erie This company covers water backup to guaranteed home replacement coverage. It has high customer satisfaction and strong financial standing. It has coverage available in Illinois, Indiana, Kentucky, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, Washington DC, West Virginia, and Wisconsin.
  1. NJM This gives unique discounts with good saving options. The company gives coverage in Connecticut, Maryland, New Jersey, Ohio, and Pennsylvania. They provide features like a backup generator and a home alarm system.
  1. Lemonade This company is available in most of the US states. It is good for people who are tech freaks as it works on digital platforms and mobile apps, and it gives instant claim and policy 
  1. Amica This company has great customer satisfaction and good financial standing. It has been a top-ranked insurance company from 2012 to 2021 it gives two policies of insurance traditional and dividend. Dividend policies may allow you to recoup 20 percent of your home insurance premium. It gives coverage to all states of the country except Alaska and Hawaii 
  1. Nationwide This company is known for high-value homes and coverage. It has 2568$ annual premium with $75000 dwelling coverage compared to the average national premium of $1969 annually. It has a good customer satisfaction record with good financial protection the coverage of this insurance company is not available in Alaska, New Mexico, Louisiana, Florida, New Jersey, and Massachusetts
  2. All-State This insurance has coverage in the whole country the coverage and policies are depended on the state you live in according to the zip code of the state

Average annual premium of the insurance companies for 250$K dwelling coverage?

The average annual premium of these insurance companies for 250$K dwelling coverage is as follows 

  1. USAA – $ 1028
  2. State Farm – $ 1568
  3. Erie – $ 956
  4. NJM – $384
  5. Lemonade – $1680
  6. Amica – $2785
  7. Nationwide – $ 161
  8. All-State – $1500 

What does homeowners’ insurance cover?

Homeowners’ insurance cover the following things

1. Dwelling Coverage

This is the main coverage that protects your home and its structure from any kind of damage like fire, vandalism, and wind.

2. Other Structures Coverage

This is also called detached structures coverage. This is usually 10 to 20 percent of the dwelling amount and covers the things like fences, sheds, and gazebos.

3. Private property coverage

This is mostly 50 to 75 percent of the dwelling amount you pay. This can be increased, if necessary, it covers your belongings in your house like furniture, clothing, and décor.

4. Liability Coverage

If someone damages your property or you damage someone’s property this coverage helps you pay the damages and your legal fees.

5. Additional living expenses

This coverage covers you when you are away from your home and are not living at home due to any reason. These can be any kind of damages because of which you cannot stay at your home.

Most of the home insurance covers medical expenses if you or your guests are injured at your place regardless of the fault of anyone according to the coverage you have taken. Buy the policy which suits your circumstances, needs, and financial condition.

Types of homeowner insurance policies?

They are a wide variety of homeowner insurance policies as they are a wide variety of styles of homes in the country. You need to choose the insurance policy which suits your lifestyle, financial condition, and needs. The types of homeowner insurance policies are as follows

  • HO-1 This is one of the basic types of home insurance this only provides structure to your house it does not provide coverage for your personal belongings additional living expenses or any kind of liabilities. 
    This is one of the basic insurance policies and is an insurance policy for the namesake it is not a highly recommended insurance policy to be taken
  • HO-2 This policy provides expanded coverage to your house liability and additional living expenses, but this policy is also for namesake only.
  • HO-3 This is known as the standard home insurance policy this policy covers most of the things it covers everything covered in the HO-2 policy plus medical payment coverage. 
    Unlike HO-1 and HO-2 policies, HO-3 policy dwelling is covered on an open peril basis 
  • HO-4 This policy is for renters to insure their personal belongings and provide liability coverage. This policy does not cover the structure of your house as it is for renters not for house owners.
  • HO-5 This policy is an open peril policy it covers the dwelling and personal belongings of all perils except those which are specifically excluded.
  • Condominium This policy ensures the interior of the house owners’ unit as the exteriors and shared spaces may be covered by the master condominium policy. It ensures the personal belongings of the owner and provides liability coverage.
  • HO-8 This policy is known as the peril policy as it covers ten perils. This policy is suitable for homes where the repair or replacement cost may be higher than its resale value. An HO-8 policy is ideal for old, historical homes which have architectural significance.
    These are the policies that are prevalent when you are exploring homeowner insurance policies. Choose the one which suits your lifestyle, circumstances, the structure of your house, and financial condition.

How to choose the best homeowners insurance policy?

They are many insurance policies in the market as mentioned in the article Choose the insurance policy keeping the following factors in mind

  • Understand your needs You should get your house insured from the damages which can commonly affect your house depending on the area in which you live if you live in a windy area or earthquake-prone area calculate how much money you will need to get your house in order if such disasters occur to get your house insured accordingly
  • Know what you are comfortable with See what you are comfortable what kind of insurance company you want for your insurance a local company with a local agent or a national or an international company where you can manage your policies digitally 
  • Compare different policies When you are clear about what you want then you must shop around to buy what you need to compare the policies of different insurance companies to see what is suiting you your budget and requirement before finalizing the policy for yourself 
  • Revaluate your insurance needs according to your circumstances Life keeps on changing with changing periods so it is important to evaluate your needs according to the changing circumstances of your life. 

Modify your insurance policy according to the changing circumstances of your life. It is recommended that you work with a licensed insurance agent and explain to him or her your requirements. So that the agent can help you get the best policy for yourself.

Why Does Location Matter when choosing the insurance policy?

Location is a major factor that is considered when choosing an insurance policy as houses are built in different conditions and are prone to various disasters which can affect the house. 

A house in a hilly area will need a different kind of insurance than a house in a plain area or a plateau area as the people living in that area will need to be ready for different kinds of disasters according to the physical features of the area and the disasters to which it is prone. 

The national average cost of homeowner insurance is $1393 per year for $ 250000 coverage.

Conclusion

Home is the shelter that gives us security and comfort throughout our lives. So, we must ensure the house from disasters that can damage the house and hurt our pockets and security. 

So, choose the insurance policy keeping your financial condition, house location, and circumstances in mind. Enjoy your life. Stay secure, safe, and healthy. Enjoy the comfort of your home.

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