What is Home Insurance?
Homeowners insurance (also called home insurance or hazard insurance) protects your home and belongings against damage, theft, and liability. Most mortgage lenders require you to have homeowners insurance before they'll approve your loan.
A standard home insurance policy typically covers:
- Damage to your home's structure (fire, windstorm, hail)
- Personal property inside your home
- Liability if someone is injured on your property
- Additional living expenses if you can't live in your home
Types of Home Insurance Coverage
Dwelling Coverage
Covers the structure of your home including walls, roof, and built-in appliances.
Personal Property
Covers your belongings like furniture, electronics, and clothing.
Liability Protection
Covers legal fees and damages if someone sues you for injuries.
Additional Living Expenses
Covers hotel and food costs if your home is uninhabitable.
Average Home Insurance Costs by State
| State | Annual Average | Monthly Average |
|---|---|---|
| California | $1,200 | $100 |
| Texas | $2,100 | $175 |
| Florida | $3,600 | $300 |
| New York | $1,400 | $117 |
| National Average | $1,820 | $152 |
How to Save on Home Insurance
- Bundle with auto insurance (save 10-25%)
- Increase your deductible
- Install security systems and smoke detectors
- Improve your credit score
- Review and update your policy annually
- Ask about discounts for new homes or renovations
What's NOT Covered by Standard Home Insurance
Standard policies typically exclude:
- Flood damage (requires separate flood insurance)
- Earthquake damage (requires separate policy)
- Maintenance issues and wear and tear
- Sewer backups (optional add-on available)