Your home is likely to be one of the largest investments you make in your life and you?ll want to protect it accordingly. But home insurance can be a confusing subject?figuring out what it covers and which policy is best for you isn?t always easy. But by learning the basics, you can choose the best policy to protect your treasured abode for years to come!

The Basics

Homeowner?s insurance provides protection against calamities that affect the structure of your home and your possessions.

A standard policy has two main functions:

Your policy will also provide you with additional living expenses if you are temporarily unable to stay in your home after a damage or loss. Without these protections, you leave your home and your most valuable possessions at risk for loss?a risk most homeowners can?t afford to take.

Policy Types

There are different types of home insurance available to you, with varying protections and premium amounts. Knowing what you need from a policy before you buy will help you select the right policy and help you to avoid purchasing more than what you need.

The three main types of home insurance policies are HO-1, HO-2 and HO-3:

HO-1: A bare-bones policy that covers basic perils like fire and smoke; wind and hail damage; and theft and vandalism. Because of its limited coverage, however, many states are discontinuing the HO-1 policy, and your agent will almost certainly encourage you to purchase a policy that covers more perils.

HO-2: A basic policy that protects against the same perils covered under an HO-1 policy, plus six more. Additional coverages include water damage from plumbing and home appliances; falling objects; and damage from the weight of snow or ice.

HO-3: A broad policy that covers against all perils except for exclusions such as damage from earthquake, flood, war or landslides. Its extensive coverage makes the HO-3 coverage the most commonly purchased policy.

Other homeowner?s policies are available for condos, mobile homes and older homes. Your homeowner?s insurance agent will discuss special types of policies with you if they apply to you.

Level of Coverage

After you?ve chose a policy type, you?ll need to determine the level of coverage you want.

Generally speaking, you have three options:

Actual Cash Value: This level of coverage pays to replace your home and possessions minus the cost of depreciation. This means you may receive less for your home or items than you originally paid for them.

Replacement Cost: This level of coverage pays whatever it costs to repair or replace your home and possessions without a deduction for depreciation.

Guaranteed Replacement Cost: This level of coverage pays whatever it costs to rebuild your home and replace possessions before the damage took place, even if it exceeds your policy limit. This can protect you from increases in construction costs and other such variables.

While replacement cost policies often cost more money, the level of protection will be well worth it if you ever experience a significant loss or damage to your home.

A Word about Additional Coverage

Flood and earthquake coverage is not covered under standard home insurance policies, much to the surprise of many homeowners. Additional coverage can be purchased through your home insurance agent, as well as through federal programs like the National Flood Insurance Program (NFIP).

While homeowners living in high-risk areas may be required to purchase these types of additional coverage, you may want to purchase some level of additional coverage to boost your protection. Be sure to ask your agent about extra coverages and how you can adequately protect your home from calamities not covered in a standard policy.

Protect Your Home Today.

Living without home insurance is living on the edge. Protect your home and your wallet and use these tips to find the affordable homeowner’s insurance protection you need for years to come!

About InsureMe

Megan L. Mahan is a copywriter and insurance information expert with InsureMe in Englewood, Colorado. InsureMe links agents nationwide with consumers shopping for insurance. Specializing in auto, health, life, long-term care and home insurance quotes, the InsureMe network provides thousands of agents with insurance leads every year. For more information, visit InsureMe.com.

As we?ve recently witnessed, natural disasters like hurricanes can strike at any time and decimate treasured home and possessions, leaving homeowners with nothing. But with a little planning and the proper homeowner?s insurance, you can protect yourself, your family and your property.

Disaster Planning

In times of disaster, safeguarding loved ones is top priority. That?s why it?s essential to prepare an escape plan ahead of time and make sure your family knows what to do in the event of an emergency. Emergency phone numbers should also be reviewed with family members and posted somewhere (perhaps on the refrigerator) for easy access.

When it comes to protecting your valuable and hard-to-replace items, you can also plan ahead and protect them. Items like birth certificates, insurance policies, home inventories and other valuables should be placed in a safe deposit box during high risk seasons. That way, if your home suffers significant damage, your valuable items are out of the house.

Prevent and Circumvent

While most natural disasters can?t be prevented, you can circumvent damages from disasters like wildfire, floods and mudslides by carrying out certain safety measures. Often times, damage can be minimized simply with smart landscaping.

If you live in a forested area, you can minimize your risk of wildfire damage by clearing all brush, shrubs, sticks and other debris from your property that could fuel a fire toward your home. ?Fuelbreaks? like cement and gravel walk and driveways can also slow a fire?s pathway toward your home.

If you live in an area prone to floods or mudslides from heavy rains or hurricanes, you can plan certain diversions for water through landscaping; sump pumps can also drive water away from your home. Furthermore, planting extra grass can ?anchor? the soil after a flood or fire, which helps prevent ground erosion around your house.

Finding the Right Insurance

Of course, insuring your home from these perils is also an essential part of safeguarding your property. If you already have home insurance, you should talk to your agent and go over what?s covered and what?s not covered under your policy. Many homeowners are surprised to learn that flood and earthquake damages are not covered under standard policies. And with the large scope of damages these natural disasters can cause, you?ll want to make sure you?re adequately protected.

So how can you get extra coverage?

The National Flood Insurance Program (NFIP) is a federal program through which you can purchase flood insurance. Most private insurers also sell additional flood and earthquake coverage.

If there are certain valuables that aren?t covered under your standard policy, you can get coverage for those items by purchasing a rider. A rider is an extension to your home insurance policy which covers selected items.

When it comes to homeowner?s insurance, knowing what you need to protect your property is the best way to save money?resulting in the cheap homeowner?s insurance you want and the insurance coverage you need.

Take Action against Disasters

We can?t control natural disasters, but we can plan, circumvent and insure against them. Develop a safety plan, prepare your home to withstand disasters and talk to your agent about finding the coverage you need. You?ll rest easier knowing you?re protected!

About InsureMe

Megan L. Mahan is a copywriter and insurance information expert with InsureMe in Englewood, Colorado. InsureMe links agents nationwide with consumers shopping for insurance. Specializing in auto, health, life, long-term care and home insurance quotes, the InsureMe network provides thousands of agents with insurance leads every year. For more information, visit InsureMe.com