While having homeowners insurance in place can be considered a “safety net” if you have to pay for repairs, the process of choosing the right option can seem tricky. Looking at all the options might leave you with more questions than answers.?

In this guide we’ll break down some of the most common questions around homeowners insurance:?

• What homeowners insurance is

• What is and isn’t covered

• How to find the best option for you

• Where to buy homeowners insurance

• How to decide if homeowners insurance is worth it for you

Homeowners insurance covers the cost of repairing or replacing your home and belongings? due to damage caused by things like fire, theft, or natural disasters. For example if your home floods due to a burst pipe you could potentially claim on your insurance to cover the cost of repairing the damage. It can also provide liability coverage if someone is injured on your property.

Coverage can vary so you’ll want to carefully read the specific details of your policy but things typically covered include:

• The structure of your home

• Your personal belongings

• Liability for injuries occurring on your property

• Living expenses if you need to live elsewhere during repairs

Many policies will also include a deductible or excess which is an amount you agree to pay towards any claim you file.?

Things not covered by your insurance policy (also known as exclusions) will vary depending on your policy but can typically include “wear and tear”, damage due to lack of maintenance, mold, rodent or insect infestations, earthquakes and certain types of flood damage. In these cases, you may need to buy additional coverage. You’ll want to feel confident that you’re covered for what you need so always carefully review your policy's exclusions so you're fully aware of what is not included.?

The right choice for homeowners insurance will depend on your own priorities. There’s no one-size-fits-all approach to choosing the best option but here are some things to consider to help you navigate the process:

Consider your requirements: Think about your personal circumstances, your location, the value of your home and your belongings, and anything else important to you. Use this knowledge to help decide on the amount of coverage you feel comfortable with.

Understand your risks: Identify any unique risks your home may face, like flooding, wildfires, or earthquakes as these may require additional coverage.

Think about cost: Shop around and gather quotes from multiple insurance companies to get a fuller picture of what’s available. That way you can be sure you're getting the best rate for the coverage you need.

Research customer service and efficiency: While price is an important factor, it's not the only one. Consider other aspects like customer service, claims handling, and the financial stability of the company.

Read Reviews: Check out Trustpilot reviews from other homeowners to get an idea of their experiences. Look for patterns in the feedback, both positive and negative.

Understand the policy: Make sure you thoroughly understand what's covered and what's not. If there's anything you don't understand, don't hesitate to ask.

Work with a broker: If this all sounds overwhelming, working with an insurance broker might be a good option for you. They can help guide you through the process, answer your questions, and find you the best policy for your needs.

There’s no single answer as the average cost of homeowners insurance will vary depending on factors like your location, the size and value of your home, and the type of coverage you need. External influences such as climate change and inflation have also affected the cost of insurance, with many homeowners facing an increase. As a rough guide, research by Marketwatch states that the average annual cost of homeowners insurance in the United States is $2,417.10 but what you pay will be based on your unique circumstances.

Buy home insurance directly from an insurance company, through an insurance agent or broker, or using online comparison sites. Many companies offer online quotes so you can compare policies and prices. Whichever insurance company you choose, be sure to read reviews to see how other homeowners describe their experience.

Having homeowners insurance isn’t a legal requirement but will probably be an essential part of a mortgage application and other financial protection. Having gone through the mortgage process recently I’ve seen this first hand. My mortgage broker even has an in-house insurance department to help buyers get it set up as the sale won’t complete until I have insurance.?

Think of it this way, according to statistics from iii, property damage, including theft accounted for 97.7% of home insurance claims in 2021 with the main causes of damage relating to wind and hail, fire and lighting, and water damage and freezing. Would you feel more comfortable knowing you were covered if any of these should affect you? You might find that just having peace of mind that you’re financially protected against unforeseen incidents makes it worth it.

Trustpilot is a review platform that is open to all. The companies and profile pages referenced in this article are provided for informational purposes only and are not recommended, endorsed by, or representative of the views of Trustpilot. The Trustpilot companies linked in this post are expected to abide by?Trustpilot’s Guidelines, but have not been reviewed for compliance.