Whether you own or rent your own home or business, it is frequently advised to purchase property insurance. You may wonder why this is the case and if it is truly necessary. In this guide, you will find out what property insurance is, the types of property insurance, why it is important, how to choose an excellent property insurance plan, and the best property insurance providers.
What Is Property Insurance?
Whether you are an owner or a tenant, property insurance can help protect you in case of property damage or theft. The insurance company will reimburse you for the costs of the property or the costs to replace your property. Depending on your insurance plan, they will also cover accidents occurring on your property, temporary stays in other locations due to property damage, or moving insurance on your belongings.
Types of Property Insurance
When you are selecting your property insurance plan, it is important to know the different types of plans available. In this way, you can pick a plan that meets your needs.
- Homeowners Insurance: If you own your own home, homeowners insurance is the perfect plan for you. It covers your property, home, and your belongings. Depending on your specific insurance plan, you may also receive discounts on essential home safety devices such as security systems and smoke alarms.
- Renters Insurance: If you are a tenant in a home, condo, or apartment, renters insurance is your ideal choice. Your landlord should have property insurance, however, your belongings are not covered by this plan. It is important to secure your own plan to make sure your belongings can be reimbursed in case of damage.
- Landlord Insurance: If you own properties that other people rent, it is important to secure landlord insurance. It will provide protection against damage to residences. Some plans also cover accidents on the property and loss of rent.
- Flood Insurance: For some plans, you will need to specify that you would like flood insurance added to your plan. If you live near a body of water, at a lower elevation than your neighbors, or in an area with frequent storms and heavy rainfall or snowfall, flood insurance may be particularly important. It covers damage to your property and belongings in the event of a flood.
- Earthquake Insurance: Like flood insurance, you often need to inform your insurance company you would like this package added to your plan. It covers damage to your property and belongings from earthquakes.
Why Is Property Insurance Important?
Property insurance is important for many reasons. The main benefits include:
- Building Protection: In the unfortunate event of a devastating fire, flood, earthquake, hurricane, or another disaster, your home may be partially or fully destroyed. An insurance plan can cover minor or major damage to your home, making sure you do not need to pay the costs of rebuilding out of pocket.
- Belongings Coverage: You worked hard to obtain your belongings. If they are damaged or stolen, property insurance can partially or fully cover the costs. This may be particularly important if you own high-value pieces.
- Liability Coverage: Some property insurance plans include liability coverage, meaning they will cover expenses if an accident occurs on your property.
- Loss of Use: If your home needs to be repaired, renovated, or rebuilt after a damaging event, your insurance plan can cover the costs of temporarily relocating. They may pay for travel expenses, temporary housing, and even meals during your relocation.
- Travel Coverage: If you travel often, you may benefit from your property insurance covering a certain number of valuable items off the property. If a theft occurs on one of your trips, you can take advantage of your policy.
- Potential Bundles: Many insurance companies offer deals or discounted rates when you decide to combine insurance plans. A common insurance bundle is property insurance and auto insurance. Over the course of a year, you can save hundreds of dollars through bundles.
How to Choose a Property Insurance Plan
Insurance providers and property insurance plans can be difficult to navigate. Use the following steps as a guide to ensure you choose the best insurance plan for your needs:
- Find an Excellent Insurance Company: When you are looking for a property insurance provider, it can be tempting to pick one with appealing rates. However, it is more important to look at past and existing clients’ experience with submitting claims. Did it take a long time and many follow-ups to have their claims accepted? Was customer service friendly and helpful every step of the way? These aspects will tell you everything you need to know about your insurance company.
- Choose the Right Coverage: When assessing the right coverage, you will need to assess many factors. You will need to consider how many belongings you have, their worth, the worth of your home and how much it would cost to rebuild, and the common weather and natural events in your area.
- Consider Additional Coverage: Most standard insurance plans do not cover everything you may need to feel safe and secure. If you wish to have natural disaster coverage, this is typically an added package. If you have valuable antiques, art, or jewelry, you may need to add this to your original plan.
- Lower Your Monthly Costs: You can decrease your premiums by bundling your insurance plans with the same insurance company, raising your deductible, and making property and home improvements.
Best Property Insurance Companies
It can be exhausting scanning many insurance companies and comparing their rates. If you prefer to look through a few of the most popular or most-used property insurance companies, you will benefit from this list:
USAA: USAA is one of the most popular insurance companies. They offer homeowners insurance, renters insurance, condo insurance, landlord insurance, valuable personal property insurance, mobile home insurance, farm, and ranch insurance, among many others.
Allstate: Allstate is another excellent property insurance provider. They offer many different plans under the umbrellas of homes, renters, and condos.
StateFarm: StateFarm is known for its superior customer service, detailed coverage, and competitive rates. They may have particularly great prices for those who plan to bundle.
Nationwide: Nationwide offers home, renters, condo, and private client property insurance. They are well-known for their excellent coverage.
Progressive: Progressive is an increasingly popular choice for property insurance, as they not only sell their own policies but also sell competitive policies from other providers.