Get a Personalized Homeowners Insurance Quote Today
Homeowners insurance is a type of property insurance that provides financial protection to homeowners in case of damage to their property or belongings. Most lenders require some form of homeowners insurance when purchasing a mortgage, but you can also look at it as protection from the curveballs that life tends to throw.
Insider Tip:
Whether you are a first-time or seasoned homebuyer, speaking with an insurance professional about your homeowners insurance needs is crucial. These experts can look at your coverage needs and suggest insurance solutions perfect for your home and situation!
Homeowners Insurance Coverage Tailored for Your Needs
Homeowners insurance is designed to protect your home and financial well-being in case of unexpected events. If it’s a part of your home or on your property, homeowners insurance may cover it.
Dwelling Coverage
Dwelling coverage protects the overall structure of your home (roof, foundation, etc.) from covered occurrences like fire, lightning, windstorms, hail, and more. It usually pays for repairs or rebuilding the house.
Scenario: A severe storm passes through your area, bringing strong winds that damage the roof of your house. Dwelling coverage would help pay for the repairs to your roof.
Liability Coverage
This covers legal expenses and damages if someone gets injured on your property and sues you. It can also cover property damage caused by you, your family members, or pets.
Scenario: A guest slips and falls on your icy driveway during winter, resulting in injuries. Liability coverage can help cover medical costs or legal expenses if the injured person sues you.
Personal Property
Coverage for your personal belongings (furniture, clothes, electronics, etc.) if they are stolen or become damaged during a covered event.
Scenario: A fire in your home damages or destroys your furniture, clothing, and electronics. Personal property coverage would assist in replacing these items.
Loss of Use / Additional Living Expenses
Compensation for living expenses if your home becomes uninhabitable due to a covered event.
Scenario: Your home becomes uninhabitable due to significant damage from a covered event. Loss of use coverage would help pay for temporary living expenses such as hotel bills or rental costs while your home is being repaired.
Insider Tip:
Standard home insurance policies typically do not include coverage for floods or earthquakes. At Veterans United Insurance, we offer flood and earthquake coverage as policy add-ons so that you can protect your peace of mind all in one place.
Why Choose Veterans United Insurance?
Veterans United Insurance works in collaboration with the nation’s #1 VA lender*, Veterans United Home Loans, to meet service member’s homebuying and insurance needs.
This partnership ensures that Veterans and active-duty service members have access to comprehensive insurance coverage that aligns with their specific requirements, preferences, and needs.
Our goal is to make the process of protecting your home as seamless and convenient as possible, allowing you to focus on what matters most. With the support of our dedicated team and the partnership of a trusted VA lender, you can trust that we have your best interests at heart.
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Homeowners Insurance Frequently Asked Questions
Is Homeowners Insurance Required?
While no state or federal laws require homeowners insurance, most lenders make it a mandatory condition of the mortgage agreement. Homeowners insurance gives lenders and homeowners protection against unexpected tragedies such as fires, crimes, and extreme weather.
So, yes, homeowners insurance is required in most cases. However, if you think about it, homeowners insurance is more of a need than a “requirement.” It helps you protect one of the biggest purchases you’ll ever make; even those who own their home outright have a need for homeowners insurance.
How to Get Homeowners Insurance?
You can begin the process of obtaining homeowners insurance by speaking to an insurance professional about your new home and its assets. Don’t worry; they will guide you through the easy process!
Once you have homeowners insurance, you will pay a regular premium to maintain your policy. If your mortgage lender requires you to use an escrow account, then you will typically pay homeowners insurance annually to that account. Otherwise, you can choose how frequently you’d like to pay.
How Does Homeowners Insurance Work?
In the unfortunate instance where you may need to file a claim, you would contact your insurance provider and let them know specifics about the event. From there, the following steps typically take place:
- Contact Your Insurance Provider: Let’s say a storm whipped through your town, and a tree fell on your home. Your first step would be to contact your insurance company and file a claim.
- Document the Damage: From there, they would dispatch an adjuster to assess the damage. The adjuster’s role is to evaluate the extent of the loss. This is to help them determine how much the insurance company should pay to restore the property. For the best outcome, it’s important to document the full amount of damage to your property by taking photos and videos and keeping receipts.
- Pay the Deductible: Once the claim is approved, you will be responsible for paying a deductible, which is the amount you agreed to contribute before the insurance coverage kicks in. The insurance company would then provide a payout to cover the remaining costs, up to the policy limits.
- Use Your Claim Payout: If the damage to your property is covered, your insurance company will send you the funds to restore your home. Many insurance companies will recommend contractors to help you fix your property; however, you are free to choose your own contractors.
It’s perfectly acceptable to ask your homeowners insurance provider about their company-specific approach after a claim is filed. While most insurance companies will have slightly different workflows, the above steps are the general milestones to expect upon filing a claim. Of course, cases that call for liability insurance coverage may require additional steps, as medical bills and other sources of proof may be requested.
Actual Cash Value vs. Replacement Cost Coverage
The primary difference between actual cash value (ACV) and replacement cost insurance plans lies in how they value and reimburse for damaged or lost items. At Veterans United Insurance, we always try to offer replacement cost plans so that you don’t have to worry about receiving less than your items are worth.
| Actual Cash Value Coverage | Replacement Cost Coverage | |
|---|---|---|
| Definition | ACV takes into account depreciation when reimbursing for a loss. It considers the current market value of the item, factoring in its age, wear and tear, and any obsolescence. | Replacement cost coverage pays for the cost of replacing or repairing damaged or lost items at their current market price without considering depreciation. |
| How it Works | The reimbursement amount is based on the item’s replacement cost minus depreciation. | The reimbursement amount is based on what it would cost to buy a similar new item at today’s prices. |
| Example | If a five-year-old TV is damaged, the insurance company would assess its current value considering its age and use over time, which might be significantly less than the cost of a new TV. | If that same five-year-old TV is insured under replacement cost and coverage and is damaged, the insurance company would pay for a new TV of similar kind and quality without deducting for depreciation. |
Is Homeowners Insurance Worth It?
Absolutely! In addition to providing coverage against unexpected perils, homeowners insurance can also cover your assets within the home. Furthermore, homeowners insurance can give relief in situations where someone becomes injured on your property.
Homeowners insurance is a crucial safeguard for both lenders and homeowners, offering vital protection for significant investments and peace of mind in the face of unforeseen challenges.
