What is Home Insurance? Companies Offering Home Insurance

A home is a resting place, it’s a place where you can run back to after a hectic day at work. Now, imagine coming back from your place of work only to see a building you struggle financially and otherwise to erect as shelter completely destroyed by fire or any natural disaster like wind.

God forbid right? Accidents are normal occurrences in our everyday life; That is why this article is here at your disposal to cure things that you cannot prevent (like fire bring down completely your entire building).

It is no news that insurance generally is an agreement made by a company to an individual who pays a certain sum of money in order to be gain financial assistance from that company in cases of perils caused by natural disasters like flood, fire, wind or even illnesses.

Whereas a home insurance is a type of insurance whereby an individual is given assurance that anything that happens to their properties, the building, or other properties kept at home.

The money paid to the insurance company is called the premium, the company is called the insurer, while the individual buying the insurance plan is the insured.

Coverage Of Home Insurance

Home insurance is also called homeowners insurance. its covers building, the properties in that building and also members of the household are cared for in times of any health challenges.

Although the type of coverage the insurance company will offer you determine the premium you acquire; higher coverages, the higher the premium rates. There are also bonus benefits added to higher premiums although it varies from one company to another.

Companies offering home insurance guarantee their customers of any damage to the home or properties of the insured, although destructions caused by mood swings, suicide/suicide attempts or personal reasons may not be included and hence, there will be no replacement or financial aid from the company.

Premiums paid for home insurance or homeowners insurance varies in cost, the company will visit your home and check the cost of building the house and the properties in it before issuing you the premium cost. E.g. a house built in a swampy area or an environment with history of seasonal flood will perhaps be have a higher premium charge than that with none; also, the quality and quantity of properties in the home affects premium costs.

Interestingly, home insurance also covers Personal liability for damage and injuries to third-party e.g. There is a package that covers the medical expenses of others who sustain an injury on your property.

How Does Home Insurance Work?

To acquire a home insurance plan, all you need to do is to search online for list of companies offering home insurance and apply for a premium, you may need the help of a risk analyst or an insurance agent to tell you the type of premium suitable for home, the benefits of each respective premium, and how to acquire premiums at low costs.

After application, the workers in that company will visit your home to check the cost of building the house and the properties it contains so as to replace them if any damages eventually occur. 

You will be offered the choice to buy an insurance plan for just a short duration and/or for the building (exclusion of the properties in it).

However, signing up for larger coverages reduce premium cost other than a single coverage; and long term coverages (e.g. 35 to 60 years, or permanent plans) are cheaper than those purchased for a short term (e.g. 10 to 20 years).

After choosing your insurance plan, you will proceed to signing a legal agreement with the company (simply referred to as an insurance policy) the company keep in touch with you and your household properties in readiness to financially assist you if any destruction or damage occur in the house.

Please note: if you choose a short term insurance plan for your home and no damage occurs in the house, the premium automatically expires and you will have to renew it; this renewal is important though not mandatory for the insured.

List Of Companies Offering Homeowners Insurance in 2022

Insurance is all about risk reduction, there are so many companies offering home insurance, although larger companies have fewer advantages over small companies for instance,

  • They are more trust worthy because of their past records and long stay into the business
  • Large home insurance companies offer cheaper premiums than small companies who are sometimes fighting cases of liabilities, sometimes small insurance companies even acquire reinsurance from larger companies to avoid liabilities.
  • Also, large companies offer more additional benefits or coverages (e.g. third party coverages more than small companies.

Most of the large companies we listed below have past records of their financial strength and good records of their services to policy holders and also offer special ads- premiums to help meet up the needs of the insured. Below is a list of best and trustworthy companies offering home insurance, they include:

  • Lemonade
  • United services automobile association (USSA)
  • Amica
  • Allstate
  • Statefarm
  • Nationwide
  • American family
  • Erie insurance
  • Liberty mutual
  • Farmers insurance company

Factors Affecting The Cost Of Home Insurance Premiums

Location Of The House: As explained earlier in this article, a home situated in an area where flood is experienced seasonally will require higher premium cost than one situated in a dry land.

The Quality Of The House: Insurance companies will visit your home and calculate the price of your home and how it will cost them to rebuild it if any damages occur.

Duration: The duration your house has stayed is also considered as a criterion, and the security (e.g. drainage system, fire extinguishers, and fire alarms) you have provided against perils.

Coverage: Insurance coverage is directly proportional to premium costs. i.e., the larger the coverage, the higher the cost of premium you will purchase. E.g. it will cost you more money to cover or protect your home and the properties in it against damage than when you cover only the properties in the house.

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