Your home is one of the most important assets you own, if not the most important. Protecting it should be at the top of your priority list, especially later in life when it will provide a pillar of your retirement and elder care.

Yet figuring out how to protect that home can be confusing. If you need to buy homeowners insurance or shop for an upgrade, make sure you do it right, otherwise your home may be at risk of disasters that are not covered.

In this guide, we will discuss how to compare policies, check for discounts, and consider deductible levels. That way, you can make the best decision for you and your home.

What to Know About Homeowner’s Insurance

Homeowners insurance policies vary from vendor to vendor. They can also differ depending on variables such as your location, climate patterns, size and age of your house, and desired level of coverage.

No matter what, though, you will find that most homeowners insurance policies offer some variation of the following coverage types:

• Dwelling: As the name implies, this protects the physical building(s) in which you live and anything built onto it.
• Personal property: This type of coverage protects the items inside your home that are not attached to the physical structure, such as televisions, jewelry, or art.
• Additional structures: If you have detached garages, ADUS, outbuildings, or fences, they’ll fall in this category.
• Loss of use: If something happens to your home and you need to live somewhere else, loss of use coverage will help.
• Liability: Unfortunately, accidents that occur on your property are considered your fault. If a child slips and hurts themselves on a decorative rock, for instance, liability insurance helps pay the damages.
• Medical: This helps pay the bills for someone who gets hurt on your property, going towards hospital fees, ambulance rides, and other related costs.

What Won’t Homeowners Insurance Cover?

Despite a hefty list of potential coverage types, there are several things that homeowners insurance does not promise. Typically, it does not extend to what are often called “acts of God,” including heavy rainfall, floods, earthquakes, landslides, or avalanches.

Most insurers also exclude infestations, drain and sewer problems, wear and tear, and neglect. The same goes for loss of power and attendant costs (such as food spoilage).

Lastly, in the case of nuclear dangers, war, and other realities relating to government, homeowners insurance will not cover your costs. However, since no one else will either, this isn't worth worrying about.

Preparing to Shop for Homeowner’s Insurance

So it's time to shop. Preparation is usually the most intimidating part for most homeowners, so here are some good ways to prepare.

Check Your Existing Policy (If Applicable)

Take a look at your existing policy, if you have one. Ask whether it still meets your needs, or if your needs have changed and require new coverage. In that case, note what else is called for.

Estimate How Much You Need

Don't worry, you aren't responsible for making difficult calculations about insurance coverage or premiums. However, it's a good idea to make an estimate before shopping around. Ask yourself questions such as:

• How much will it cost to rebuild my home?
• How much are my belongings worth?
• What are the likeliest injuries on my property?
• How much money will I need to be comfortable if I have to live somewhere else for a year?

When doing the math, keep in mind that your dwelling coverage should represent the total amount it would cost to rebuild your home, not a fraction of it. Personal property coverage typically equals at least 50 percent of the amount of your dwelling coverage, while liability should equate to your total assets — e.g. the amount that could be taken from you in a lawsuit were you not insured.

What Is the 80 Percent Rule?

The 80 Percent Rule is crucial. It means that your insurer will cover the cost of rebuilding your home only if your coverage equals at least 80% of it. Otherwise, you may face steep penalties or heartbreak.

Collect Pertinent Information About Your Home

Before you head out to talk to an agent, gather up the information you will need about your house. This includes:

• Claims histories
• Renovations
• Safety and security systems
• Occupants
• Address
• Age of the home
• Size and other details
• Nature of the home (e.g. part of HOA or condo)

Comparing Policies

Once you have your estimates and documentation in place, it's time to actually speak to agents. Make sure to get several quotes. This not only improves your chances of getting good coverage, but it also helps you to get the best price.

The main question is how much you’ll pay in premiums and deductibles versus how much you’ll get in coverage, so keep that in mind as you shop and make sure to:

• Compare policies on your own
• Read the fine print
• Talk to several agents
• Ask about potential discounts for common safety features

Protect Your Future

Protecting your future starts with protecting your home. Don't wait any longer to research homeowners insurance and find the best deals on the market.