Home Insurance

There is no single correct homeowners policy. There is a set of decisions, and each one has a version that is right for a particular house and household.

• Schedule the items the policy will not pay in full. A valuable possessions policy exists because of the per-item cap. It covers jewelry, artwork, antiques, watches, collections, electronics, musical instruments and rugs at what it would actually cost to replace the specific item rather than at a generic market price, and it commonly offers accidental damage coverage that a homeowners policy does not. It can also follow the item out of the house, which matters for a ring worn every day or a necklace worn on occasion, since a homeowners policy often will not cover jewelry lost or damaged away from home. Valuations are worth refreshing so the schedule stays current.
• Decide deliberately what to do about the excluded perils. Flood and earthquake are separate purchases. Other perils, including landslide and mudslide, the weight of snow and ice, and some forms of water damage, may be excluded outright or limited to well below the value at risk. Where one of those is a real exposure for the property, a difference in conditions policy can sit over the homeowners policy as primary coverage for a peril that is not covered at all, or as excess coverage above a limit that could be exhausted.
• Tell the carrier when the occupancy changes. A home is generally treated as vacant once it has been unoccupied for around thirty days, though the exact period varies by policy. That covers a house listed for sale, a gap between tenants, and a property emptied for remodeling. Because a homeowners policy is written for an occupied home and can reject a vacancy loss, a vacant home policy is the right instrument, covering specified risks such as fire, water, wind, hail and theft, along with vandalism and liability claims. Like any coverage, it has to be in place before the loss, not arranged after it.
• A second home is not a copy of the first policy. The principles are the same as a primary residence, with two real differences. A second home is unattended for longer stretches, which raises the risk of burglary and increases how much damage a fire or a water loss can do before anyone finds it. Limits are also often lower, because people keep fewer and less valuable possessions at a property they are not living in. Definitions vary by insurer, so it is worth confirming which one applies: broadly, a secondary home is one you use for short periods, while a seasonal home is one you stay in longer but only at certain times of year. The type of property, its location, expensive amenities and whether you rent it out all affect what it costs to insure.
• Price the home and auto bundle rather than assuming it. Buying both policies from one carrier commonly earns a multi-policy discount and makes the paperwork and the renewal simpler, with one company to deal with and often one premium to pay. It is not automatically the cheapest total, though, and some carriers will only bundle particular policies, which can mean buying more coverage than you need in order to qualify for the rate. The comparison worth making is the bundled quote against the two policies priced on their own. Renters can bundle with auto on the same logic.
• Separate identity theft services from identity theft insurance. They are two products that are often sold together. The service side monitors for fraudulent activity such as accounts opened in your name or credit inquiries you did not authorize, sometimes watches the dark web and a child's information, alerts you, and helps with recovery. The insurance side reimburses the costs of cleaning it up and usually includes access to fraud specialists. Before buying either, find out what you already have: banks and credit cards commonly provide unauthorized-charge protection and some monitoring at no cost, and a home or renters policy may offer a measure of it, though usually as an endorsement or rider rather than as part of the base policy.