Home owners insurance is a vital part of home ownership. It's a great tool to protect your investment. However, according to Value Penguin, only an estimated 85% of home owners in the U.S. have home owners insurance, leaving many without adequate protection. If you're one of the many home owners that don't have insurance or you're looking for a home owner insurance company, below is a beginner's guide to help you understand the basics of home owner's insurance.

Consider Your Area and Possible Disasters

When you're shopping for a home owners insurance policy, there are a few key factors you should consider. The first is the area in which your home is located. Depending on where you live, there may be higher risks for certain natural disasters. If you live in an area prone to hurricanes, floods, earthquakes, or tornadoes, your insurance premium may be higher due to the higher risk. Your home owner insurance company will tell you whether they are willing to provide coverage in your area and give you a quote on possible coverage.

Set Your Coverage Amounts

The next step in selecting a home owner insurance company is determining the amount of coverage you need. The amount you select should be based on the estimated cost of rebuilding your home in the event of a disaster. Your home owner insurance company can give you an estimate for this, but you may want to independently research local building costs in your area. You'll also need to consider whether you want additional coverage for personal property. This coverage will help replace your belongings if they are lost or damaged due to a covered event.

Understand the Different Types of Coverage

Several different types of home owner insurance policies are available, each offering varying levels of protection. The most common type is an HO-3 policy, which covers both the structure of your home and any personal items inside. An HO-2 policy is similar to an HO-3, but it only covers named perils listed in the policy. Knowing the different types of coverage available will help you decide which one is best for your needs.



By knowing your coverage options, understanding the risks associated with where you live, and setting appropriate coverage amounts, you can select the best home owner insurance company for your needs. Call us at Fischer Insurance today for more information and a free quote!