7 Things You Didn’t Know About Home Insurance

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Where would you be without your home? It’s your sanctuary and your safe haven, where you retreat after a long day of work and school, or just the place where you sleep when you don’t have anywhere else to stay at night. Protect it the best way possible by investing in some home insurance that can cover damage from all kinds of things, including fire, wind, theft, and more. Use this guide to help you find the right policy to fit your specific needs!

Home insurance is required by law

In some places, home insurance is legally required. It’s not a bad idea to purchase it anyway—but you can’t be fined for not having it. Home insurance protects you from fire and theft: We all know that our homes will burn down or be robbed someday—it’s just a matter of when. Home insurance helps pay for everything else: Most home insurance policies will also help pay for other items, such as broken glass, water damage, and personal property. Some policies even cover specific events (like hurricane damage). The Internet has made buying home insurance easy: Online applications let you estimate your premiums instantly—which means that it’s much easier to compare coverage options in real-time.

A home-insurance policy covers much more than the structure

If your home were to be damaged in a fire, for example, your policy would also cover lost personal belongings and medical expenses stemming from injuries sustained in ablaze. It’s important to know what kinds of losses you’re covered for—and which ones you aren’t. If a claim goes against you, your insurance carrier will use what are called exclusions to avoid paying up. Read your policy carefully so that you know exactly what is and isn’t covered when disaster strikes. Coverage can vary widely by provider, so make sure you know how much coverage will cost before buying a policy and compare several quotes to find the best value.

Most people don’t realize how much it costs to replace their personal possessions

According to one study, it can cost up to $100,000 to replace everything from clothing and jewelry to electronics and furniture. Home insurance covers most of these costs. There are many different types of home insurance policies available on today’s market. Here are seven things you might not know about them: Homeowners’ insurance pays for repairs or replacement if your home is damaged by a covered loss such as fire, windstorm, or vandalism; renters’ insurance pays for losses that happen inside your rented space (but not elsewhere in your building). If you live in an apartment building with multiple units, each unit has its own policy.

Flood damage isn’t covered by standard policies

Your homeowner’s insurance likely won’t cover flood damage. Many providers offer special coverage to help protect you against water damage caused by flooding, but you must specifically opt-in for it. Keep in mind that homeowners can sometimes be excluded from flood insurance even if they live in areas prone to floods. And while renters can get coverage through some policies, typically, their landlords must also have a policy on file before they are protected. Protect your home: Even if your home isn’t located in an area with a particularly high risk of flooding, it’s important to consider all risks when determining what type of coverage is right for you and your family.

Replacement cost coverage pays you for what your belongings are worth, minus depreciation

If your house burns down, insurance will pay you for all of its contents. This is called replacement cost coverage, and it pays you for what your belongings are worth, minus depreciation. Some insurance plans offer both replacement cost coverage and actual cash value coverage. If you want to be sure that you get replacement cost coverage then look for a policy labeled open perils or all-risk. These terms mean that if your home is destroyed by fire or flood, among other things, your insurer will cover it no matter what caused it to burn down. (Because there is no such thing as an all-risk policy.)

Freezing doesn’t usually damage a building

Freezing can damage pipes and roofs, but that doesn’t necessarily mean you’ll have to replace them. In most cases, items like ductwork can be repaired or replaced for less than a new one would cost. And if your home suffers significant damage from frozen pipes, you may still be covered by your policy—assuming it’s not past its expiration date or you don’t have a substantial amount of items excluded from coverage. If it is past its expiration date, adding plumbing coverage to your policy will protect against these types of damages in the future. Your agent should be able to tell you which items are typically covered by standard policies and those that might require additional coverage.

Homeowners usually have too much coverage—but not enough liability coverage

Homeowners’ insurance usually comes in three tiers. The first and most basic tier, which is generally required by lenders, covers fire, theft, and other common damages. The second tier usually offers protection against liability—so if you accidentally damage a neighbor’s property or injure someone while on your property, you’re covered. But many people don’t understand that home insurance policies offer additional liability coverage beyond what is legally required—usually in increments of $1 million to $5 million of protection (read: a lot of money). This can make a huge difference for high-net-worth families with substantial assets and property holdings.

 Get the best home insurance rate

Did you know that you can increase your chances of getting a lower home insurance rate by lowering your deductible? Depending on how much risk you’re willing to assume, raising or lowering your deductible can have a huge impact on what you pay for coverage. That said, even if changing your deductible won’t lower your premium, it’s usually still worth it: If you raise your deductible to $1,000 and have an accident where you need to make a claim, that accident is going to cost way less than if you had kept it at $500—and because most people never change their deductibles from when they first get insurance (and never will), there’s no downside in having an increased one.

What Are the Different Types of Homeowners Insurance?

The two most common types of homeowners insurance are HO-1 and HO-2. It’s a standard homeowner policy that covers homes, garages, cars, and other personal property, but not floods damage or earthquakes. The only difference between an HO-1 and an HO-2 is if your home has a swimming pool or spa. If it does, you need to buy coverage for that separate from your regular homeowner’s policy. This second coverage is called an addendum because it adds something to your existing policy. A lot of people think they have both kinds of insurance when they actually just have regular homeowners insurance—but don’t worry, that’s easily fixable!


As a homeowner, it’s important to have home insurance. However, you may not know everything there is to know about what you need and how much you should get. Do your research on local regulations and recommendations. Ask questions and make sure all of your bases are covered before moving forward with anything else! A new construction policy will be different than a policy for an older home in need of repair and restoration or that has been damaged by fire or other events. At Swift Cover Direct we can help guide you through your insurance options and answer any questions along the way, so contact us today for a quote!

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