redmond oregon homeowners insurance
Homeowners Insurance

Solved! How Much Homeowners Insurance Do I Need?

Q: I’ve heard homeowners insurance is important o make sure your assets are covered in the event of a loss. But how much homeowners insurance do I really need, and how do I determine the right amount?

A: The question of how much homeowners insurance you really need is a detailed one to answer. There are different coverage types that handle different assets. Someone might need to take out additional insurance, such as flood insurance, for certain types of disasters. And how much insurance a homeowner needs can also depend on how much their home and possessions are worth. These points are just for starters. Homeowners insurance comprises several different types of coverage, and knowing what they are can help you determine how much coverage you need, and at what cost.

Most homeowners insurance policies will cover certain perils such as theft and fire.

How Much Homeowners Insurance Do I Need

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The base of homeowners insurance is set up to cover the most common forms of loss. These common loss types typically encompass disasters, theft, and accidents. A homeowner may choose between levels of insurance. The most popular policy is often listed as the HO-3 policy, open-peril insurance which provides coverage for the structure of the home, personal belongings, and personal liability coverage.

Some of the perils covered by homeowners insurance might seem quite outlandish, but they do happen, and a homeowner would be relieved to know they’re covered if on the off chance these perils happen to them. Policies tend to cover explosions, riots or civil commotions, damage from an aircraft, damage from vehicles running into the home, volcanic eruption, and falling objects. More common situations covered include fire or lightning and windstorm or hail damage. A home might also be covered in the event of smoke damage or theft. Vandalism or malicious mischief is also often covered. Common problems in northern regions such as damage caused by the weight of ice, snow, or sleet, may also be covered. The policies might also cover more specific damages, like accidental discharge of water and steam overflow from a component in the home like the plumbing or an appliance, damage from sudden broken components of the home like the air conditioning or water heater, damage caused by freezing, and damage from sudden electrical currents.

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