Home insurance FAQ

What home insurance is used for?

Home insurance is used for protecting the customer from the financial impact he or she may face in case their home gets damaged or destroyed in course of a specific situation. The costs involved in repairing or rebuilding a house damaged by lightning, fire or windstorm can be very high and most people can't afford them. However, in return for a periodically paid premium you get the necessary financial support for repairing and rebuilding your house from the part of the insurance company you sign a contract with.

Is home insurance mandatory?

Unlike auto insurance, home insurance is not mandatory and is an option for every home owner. However, in certain situations you may be obliged to purchase home insurance contractually such in the case of mortgage or a specific rent. However, regardless whether you're obliged or not home insurance is a must from the common sense perspective. The financial impact from having your house damaged or destroyed can be immense and home insurance is the optimal way to protect yourself from such things as fire, explosions, lightning, theft, vandalism, earthquake, flood and many others.

Will home insurance cover flood, tornado or earthquake damage?

Depending on the policy you have purchased. The most common choice for house owners across the country is standard home insurance. This policy type includes coverage against different perils, however, it does not cover flood, earthquake and tornado coverage. So if you live in an area where such events are quite likely it is highly recommended to purchase a weaver for respective perils if your policy does not include them by default.

What about third party liability?

All types of home insurance include third party liability coverage as well. It may be surprising, why home insurance would carry such thing. However, in the event when a person gets injured while on your property they have the right to file a court suit against you. Say your dog has bitten a visitor or a worker at your house. Third party liability coverage helps minimize the impact of such an event and pays out the liability in order to avoid legal action.

How can I get the best rates?

Getting the best rates on home insurance is rather simple. Get as many quotes from different companies as you can, compare them and apply for a policy that has the best relation between price and coverage amount. This way you can get very competitive deals.