Home Insurance 101: What is Home Insurance?


Home insurance: it’s that payment you forgot to factor into the cost of owning a home, right? Home insurance is that insurance policy that you constantly ask yourself about: what exactly are you paying for, and why is it necessary? It’s actually a very valuable form of insurance, and if you fully understand how to utilize it to fit your specific needs, you may just be able to reach an affordable rate that benefits you, your family, and your home.

Every home is different, and therefore, every home insurance policy must be unique as well. The expert insurance agents at Weed Ross are extremely familiar with home insurance, as we deal with tons of insurance providers that offer all sorts of homeowners insurance coverages and benefits. But what is home insurance? What’s the difference between one home insurance policy and the next? What are your actual options? Below, Weed Ross takes you to insurance school; welcome to Home Insurance 101.

In this article, we will cover:

What Exactly Is Home Insurance?

Home insurance is a style of property insurance that specifically covers damages and potential losses from incidents in or around your house. Typically, homeowners insurance policies provide liability coverage against a wide range of accidents and occurrences, including if someone manages to hurt themselves on your property. Homeowners insurance is completely distinct and separate from landlord insurance, mortgage insurance, business insurance, renters insurance, and secondary/vacation home insurance. It also may not always cover home sharing or AirBnB.

What Coverages Are Included in Home Insurance?

Home insurance covers a wide range of incidents, but basically put, homeowners insurance is designed to protect your home. Home insurance packages can be tailored to fit your specific risks and needs, depending on your home’s location or lifestyle. Home insurance policies are made to cover the structure of your home, protect it from weather-related damages, and also protect the extraneous parts of your home, such as sheds, fences, driveways and others.

Does Home Insurance Cover AirBnB?

Most home insurance providers can provide specific coverages for AirBnB, but these conditions almost never come standard. If you are interested in home sharing, you will often need a homeowner or landlord insurance policy with special endorsements. You want to be sure that you are sufficiently protected from any potential liabilities when renting out your property. If you try to rent your dwelling or partake in home sharing with a standard home insurance policy, you might be taking a major risk. Always talk with your insurance experts to be sure you’re covered.

Why Do You Need Home Insurance?

Mortgage lenders almost always require home insurance, so the answer, simply put, is yes—you need home insurance as a homeowner. Though most state regulations may not legally require that you get home insurance, it’s often a prerequisite to obtain a mortgage loan. Also, home insurance companies provide benefits that you won’t want to live without, and you’ll be kicking yourself after the fact, that’s for sure. Home repairs can be astoundingly costly. Some accidents are unpredictable, and some are even almost inevitable.

What Are the Different Types of Home Insurance?

Home insurance comes in all different types of packages. Depending on your home and your specific needs, you’ll want to consider all of your options. Home insurance is classified into eight different policy types, for the most part, but some are more common than others.

Homeowners insurance types:

  • HO-1: a basic coverage for single family homes
  • HO-2: a standard policy with slight upgrades in coverages
  • HO-3: the most popular type of home insurance with very broad coverage
  • HO-4: a homeowners insurance for renters
  • HO-5: an all-encompassing home insurance policy
  • HO-6: a homeowners insurance designed for condos specifically
  • HO-7: a type of home insurance for mobile/manufactured homes
  • HO-8: a home insurance formatted for homes that don’t meet certain standards

What Does Home Insurance Cost?

Home insurance prices will vary based on a variety of influential factors. Home insurance policy premiums are dependent on things like the home’s size, the cost of rebuilding, the susceptibility of the home to weather damage, the type of construction materials used to build the house, and others. You can also take several steps to reduce the cost of your home insurance with home maintenance. With up-to-date burglar alarm systems, smoke detectors, sprinkler systems, locks, carbon monoxide detectors, and fire extinguishers, you can significantly reduce your home insurance costs.

If you’re looking to get a quote for a home insurance policy, it’s extremely simple with our automated quoting process. Still have questions about home insurance? Contact the experts at Weed Ross for more information.

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