Home Insurance

Purchasing a home is one of the most significant financial decisions you’ll ever make. Protecting that investment with the right insurance is essential. A home insurance policy helps safeguard your most valuable asset, giving you financial protection and peace of mind.

Solutions Insurance works with a wide range of providers to help you find a policy that’s right for you. We’ll help you navigate the complexities of home insurance and find a solution that offers the best value and most comprehensive coverage for your needs.

What Home Insurance Covers

A typical home insurance policy is composed of two main types of coverage: property and liability.

• Property insurance covers damage to the physical structure of your home, including your belongings. This could be anything from the building itself to the contents inside, such as furniture, appliances, and clothing.
• Liability coverage protects you from claims and lawsuits that may arise from injuries or property damage that occur on your property, or from actions you take. This is a critical component that can help cover legal fees and damages if you’re found responsible for an incident.

The level of coverage can vary greatly, from basic policies that cover a limited number of events to comprehensive plans that protect against a wide array of risks.

Perils: The Events Your Policy Covers

In the world of insurance, a peril is an event or a risk that your home may be covered for. The specific perils included in your policy depend on the type of coverage you choose and your geographic location. For example, if you live in a region prone to earthquakes, you’ll want to inquire about earthquake insurance. If you’re in a flood zone, flood insurance is a must.

Our brokers can help you understand the risks specific to your area and build a policy that covers the events most relevant to you. While this list isn’t exhaustive, here are some common perils that may be included in a home insurance policy:

• Fire
• Lightning
• Wind storms and hail
• Vandalism
• Theft
• Water damage from burst pipes

It’s equally important to know what your policy doesn’t cover. Most policies exclude damage from general wear and tear, maintenance issues, or negligence.

Understanding the Main Categories of Home Insurance

Home insurance policies can generally be grouped into three categories based on their level of coverage. The key difference lies in how they define what is and isn’t covered.

Basic/Standard Coverage

A basic policy typically covers your home for damage caused by a limited, specific list of perils. These are often named perils like fire, lightning, wind storms, and hail. If an event isn’t on that specific list, it’s not covered. This type of policy offers minimal protection for your home’s structure and contents.

Broad Coverage

A broad policy offers a wider range of protection. It often provides comprehensive coverage for the building itself, but covers your belongings only against the specific, named perils. This type of policy may include protection against things like theft, vandalism, and unforeseen damage from events like a burst pipe.

Comprehensive Coverage

This is the most extensive level of home insurance. A comprehensive policy provides all-risk coverage for both your home’s structure and its contents. Instead of listing what is covered, it covers all perils except for a few specific exclusions listed in the policy. Many homeowners choose this type of policy for the peace of mind that comes with knowing their property has a high level of protection.

How Your Home Insurance Cost is Calculated

The cost of your home insurance premium depends on a variety of factors. These can be broken down into two main categories: information about your property and information about you.

Your Home and Property

• Size and Value: Generally, the larger and more valuable your home is, the more it will cost to insure. This includes the value of the building materials and finishes.
• Age and Condition: Older homes that haven’t been updated can sometimes be more expensive to insure because they may pose more risks, such as outdated electrical or plumbing systems.
• Location: Where you live plays a significant role. Factors like your proximity to a fire hydrant, the local crime rate, and your risk for natural disasters all affect your premium.

You as a Homeowner

• Claims History: If you have a history of filing multiple claims, insurance companies may consider you a higher risk, which can increase your monthly premium.
• Age and Insurance History: A longer, consistent history of insurance can help providers assess your risk with more confidence.

Understanding these factors can help you make sense of your insurance premiums and find ways to potentially save money.