What’s the biggest investment of your life? For most Americans, their home is the largest and most important purchase they’ll ever make. Considering the time, effort, planning, and finances that go into a new home purchase and the long term upkeep and home improvements, it’s amazing how little time Americans spend choosing a good home insurance policy. Ultimately you’re home is your responsibility, whether it’s a shoebox-sized apartment or a country estate; it’s well worth it for you to not only have homeowners insurance, but to have a great policy.

The basic function of insurance is to protect your investment. The essential question to ask yourself: What happens if my home is damaged or destroyed in a disaster? Even if you feel you’re on top of your policy, you may be surprised to learn you’re in fact paying too much, or that you’re exposed to unnecessary risk due to coverage gaps. For example: Are you covered for hotel or lodging expenses if you have to vacate your home for an extended period of time? If your house is destroyed, will your insurance pay you enough to rebuild it from scratch, or will you only be reimbursed the purchase price of a similar house on your street?

For answers to these questions and more, The Simple Dollar’s Guide to Homeowners Insurance is designed to educate and inform both new homebuyers and the homeowners who already have a policy but want to cut down on premiums, get fuller coverage or refresh themselves on how the insurance business works.

• Insurance Guide
• home Insurance Resources
• Coverage By State

Insurance Guide

• WHAT INSURANCE DOES

  Unless you have enough money to buy a small island in the Caribbean, you probably need homeowners insurance. But what benefits does the consumer really get after paying their insurer hundreds if not thousands of dollars a year? The Home Insurance guide opens with an overview of the nuts and bolts of insurance, plainly explained, easily understood. While it may seem like a simple concept at first, there is much to the industry that is crucial if you plan to save the most money.

• BASIC HOMEOWNERS INSURANCE TERMS

  Before you can walk the walk (or insure your home), you’ll need to talk the talk. The basic terms of home insurance are laid out in an easy-to-reference list so that you can check back to refresh yourself. It’s a complex field, and professionals spends years in the insurance industry obtaining their expertise – so don’t expect to learn it all at once.

• UNDERSTANDING YOUR POLICY

  Do you know what a Modified Coverage Form is? What payment you'll receive if you are the victim of arson? Will your home be covered when rats or termites show up? While many people think of home insurance as all-encompassing, most policies are rife with clauses, gaps, and exclusions. If you intend to get the most out of your policy, you need to know when your home will be covered, when to pay for additional coverage, and when you're wasting money.

• HOW TO SHOP FOR HOMEOWNERS INSURANCE

  Whatever your great aunt said about home insurance, unless she’s a real estate mogul, you can expect to find much better advice on The Simple Dollar. The same goes for insurers and salespeople – it’s best to get your information from an unbiased source. Here you’ll find tips on how to shop around and gather quotes, how to spot a good agent and insurer, and how to identify your own needs and shop accordingly.

• WHAT YOU CAN DO TO SAVE MONEY

  Whether you live in a lake house, a houseboat, the city, or anywhere else, you can do a number of things to cut down on home insurance costs. From asking your insurer for a rate review to keeping up on your home’s maintenance and disaster safety, the list of money-saving techniques is extensive. This section provides tips and tricks for saving the most while maintaining top-notch coverage.

• KEEPING UP ON YOUR HOMEOWNERS POLICY

  It’s not just about your insurer – you can take actions now to prepare yourself and your home not only for disaster, but for the inevitable financial aftermath. And as the market evolves and your home increases or decreases in value, you’ll want your insurance policy to evolve alongside your home. This section outlines some routine checkups you can perform to make sure your homeowners insurance is up with the times.

Everything you need to know about home Insurance

• Renters Insurance: Why It's Worth It

  Being a renter often means having fewer things to worry about. Got a plumbing issue? Call the landlord to fix it. The refrigerator in your rented house stopped working? Call the owners and have them replace it. But what if your apartment gets burglarized? Or, worse yet, suffers smoke damage in a fire? Some renters

• Want to Lower Home Insurance Costs? Do It Yourself

  Insurance can be thought of as the expensive but necessary hassle that ensures you aren’t wiped out by an unfortunate series of events. But for those who feel helpless in the face of rising insurance rates, there are some “do-it-yourself” (DIY) actions you can reasonably and safely do around your home in order to reduce

Coverage By State