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Everything You Need To Know About Homeowners Insurance


If you own a house, one of the smartest investments you can make is purchasing homeowners insurance.

Purchasing a home is a considerable investment and responsibility — it could even be the most valuable asset you own. Most homeowners could not afford to replace and repair their home if significant damage were to occur after a disaster, which is why mortgage lenders typically require homeowners insurance. But not all homeowners insurance policies are the same nor are they created equally. Today, we’re covering all the bases when it comes to what you need to know about homeowners insurance.

Learn more about how you can protect your investment with homeowners insurance below.

What Does Homeowners Insurance Cover?

While homeowners insurance policies vary from one to the next, the standard policy includes six different types of coverage:

Dwelling — This covers damage to the house and attached structures, like a deck or porch, and should be enough to rebuild your home if necessary.

Other Structures — This covers other stand-alone structures on your property, such as a shed or a detached garage, and the amount is typically 10% of dwelling coverage.

Personal Property — This coverage pays to replace or repair your personal belongings that were stolen or damaged in a covered event. The typical amount of personal property coverage is 50-70% of dwelling coverage.

Additional Living Expenses — This covers temporary living expenses while your house is being repaired, and the typical amount is about 20% of dwelling coverage.

Medical Payments — This pays to treat those injured on your property, no matter who is at fault. Additionally, it pays if you, a family member, or a pet injures someone elsewhere. The typical amount is $1,000 – $5,000.

Liability — This pays if you injure someone or cause property damage unintentionally or through neglect and the typical amount is $100,000 – $500,000.

What is Not Covered by Homeowners Insurance?

Some things and events are not covered by homeowners insurance. Many events require a separate policy for coverage. Events that are not typically covered by homeowners insurance include:

  • Flooding and drain and sewer backup
  • Earthquakes, sinkholes, and landslides
  • Intentional damage to your home
  • Government action
  • Neglect
  • Nuclear hazard
  • and more.

How Much Homeowners Insurance Do I Need?

Knowing how much homeowners insurance coverage to purchase can be stressful to homeowners. Thankfully, it’s not as overwhelming as it seems. Homeowners need enough insurance to cover the costs of rebuilding your home from the ground up if it becomes destroyed. You can estimate the cost of rebuilding by multiplying your square footage by local construction costs per square foot.

As for your personal belongings, most homeowners opt for coverage limits that are at least half of your dwelling coverage. Though, this amount can be adjusted per your needs. The best way to figure how much coverage you’ll need is to conduct a thorough inventory of all of your belonging. Moreover, an inventory record (a list or video usually is sufficient) can also be helpful if you need to file a claim.

If you’re still feeling overwhelmed — don’t worry. We can help.

Contact Bear River Mutual Insurance

For all of your homeowners insurance needs, contact the experts at Bear River Mutual Insurance. Our knowledgeable team of professionals is here to help you find the best, most affordable insurance policy to meet your needs. Finding a policy within your budget can feel stressful, but our experienced staff is here to help you get the peace of mind you deserve. We are dedicated to finding the perfect balance of value and security for you and your loved ones. If you are in the Provo, Orem, Salt Lake City, or surrounding area in Utah, contact us today to get your free quote.

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