The cost of homeowners insurance coverage will vary based on your specific needs, with your property, belongings, location and even credit history playing a role. We spoke with Kate Terry, the CEO of Surround Insurance, to learn more about how to find the right coverage across several circumstances:
Home Insurance for First-Time Homebuyers
For first-time homebuyers, it is important to take the time to understand home insurance fundamentals, terminology and coverage options. Look for providers that explain the basics, whether with informational content online or by speaking with an agent.
“If you don’t know what you’re buying, find a knowledgeable independent agent who can walk you through the process,” said Terry. Some providers also provide online tools to help policyholders create home inventories, estimate replacement value, understand local risks and more.
Insuring a Home in a High-Risk Area
Homeowners insurance will likely cost more in areas considered high-risk, including living in an area prone to natural disasters such as tornadoes, hurricanes or earthquakes, or a higher-crime area with elevated theft risk. You may need to purchase separate coverage for windstorms or hurricanes if you live in a coastal area. Having a newer roof can help keep your rates lower or improve your home's chances of insurability.
“In a high-risk area, homeowners insurance may be difficult to find, or you may need both a policy from a state plan and a private insurance policy to give you more coverage,” said Terry. “Don’t leave shopping to the last minute — this can take some time to sort out.” If you get denied coverage by private insurers, you can look into your state’s Fair Access to Insurance Requirements (FAIR) plan, which subsidizes high-risk insurance.
To get a better idea of the best home insurance companies in your specific area, check out our state lists using the tool below.
Homeowners Insurance With a Dog
Standard policies typically cover damage caused by some dogs, but other insurers may exclude specific pets with a history of biting or even exclude entire breeds. Terry notes that honesty is the best policy, offering homeowners the following advice: “Be upfront with your agent about what kind and how many dogs you have so they can match you to a company that will insure you. This way, if your dog does bite, the insurance company doesn’t refuse to pay the claim.”
Providers that institute a banned breed list may refuse coverage for certain breeds perceived as aggressive, such as pit bulls and rottweilers. If this can affect your application, consider finding an insurer that does not ban animals or working with an agent to find a policy that meets your pet-related needs.
Insuring Valuable Items
Homeowners insurance also covers your personal belongings damaged by named perils such as fire, windstorms, theft and vandalism. But policies often enforce sub-limits of $1,500 to $5,000 on valuable items, such as jewelry, furs and original art. You may consider purchasing an endorsement for scheduled personal property if the value of your luxury items exceeds your policy’s coverage limit. Scheduled items are covered for the appraised value if damaged by perils not included in standard coverage, such as accidental loss.
“There are also stand-alone policies for very high-value collections, like fine art or wine,” said Terry. “The same agent who you use for homeowners will typically have access to these.”
Home Insurance for an Older Home
Older homes built with outdated materials are riskier to insure because they may require more extensive plumbing, electrical or roofing repairs, or feature historical architecture that is difficult or expensive to replace. If you’re having trouble finding affordable coverage for an older home, consider updating the aging components of your home with modern materials and techniques. You can also look into local building codes to bring your home up to current standards.
Terry offers the following advice if you need help: “An insurance agent in your area will know which companies will accept your home in the first place, and are less likely to cancel your policy after an inspection.”
Switching Home Insurance Companies
If you already have home insurance, you do not have to stick with your provider for life — you can switch insurers if you’re unsatisfied with your current policy for any reason. However, you’ll want to consider if the pros of changing companies outweigh the cons. For example, you could face penalties for terminating your coverage early, so you may find it more cost-effective to wait until your current policy’s renewal date before you move forward with switching providers.
Once you’re ready to make the switch, it’s best practice to compare home insurance rates from several companies to ensure you’re receiving the coverage you need at a price that fits your budget. In addition, comparing your current policy to a new policy could help you identify any gaps in coverage. If you’d prefer assistance during this transition process, working with a licensed insurance agent may help alleviate your worries and ensure you find the right plan.
“The biggest thing to watch out for is whether your new insurance carrier is going to do an inspection,” said Terry. “If [a company] does [an inspection] and finds anything [deemed] not acceptable — such as a loose shingle or an overhanging tree limb — it may give you a relatively short period of time, like 30 days, to fix the problem or it will cancel your policy.”
