Homeowner’s Insurance (aka House or Home Insurance)
For most families, their home is the most valuable investment and often stores all
of the families most cherished and valuable belongings. For that reason, it is imperative
that homeowners safeguard their homes from perils that range from fire to theft.
Even the greatest safeguards cannot protect our homes from perils such as earthquakes,
fires, floods, and many more catastrophes, which is why it is necessary to purchase
house insurance. House insurance seeks to indemnify homeowners for damages caused
by insured perils in order for homeowners to repair or replace their property.
The perils facing your home are limitless and it is not possible, nor cost effective
to insure them all, which is why at Allena Chong Insurance, we seek to find you the
broadest protection possible for a price that fits your budget by marketing your
policy to leading insurance companies.
What does home insurance cover?
The coverage provided by a home insurance policy will differ for the type of policy
you buy. The packages commonly available are basic, broad, comprehensive, and platinum.
There are different variations for the names of these packages (eg., basic, silver,
gold, platinum), but house insurance policies are generally categorized into those
4 packages, with slight variations. The basic policy generally provides a more limited
coverage for the types of property and risks insured, while the comprehensive policies
provide broad coverage for risks and personal property. The broad policy, as the
name suggests, also provides broad coverage, but does not offer as broad of coverage
on personal property as does the comprehensive policy. The platinum policy offers
the broadest coverage of all four, but is usually exclusive to clients that meet
certain criteria. The best way to compare the policies is to have your insurance
broker show you a chart which highlights the differences. Most insurance brokers
will have these charts readily available.
How much does home insurance cost?
Insurance premiums will vary significantly for each homeowner. There’s no standard
product that fits the need of every homeowner. Home insurance policies are highly
customizable and can be tailored to meet the needs of each homeowner. Some typical
variables that affect premiums include:
Existence of other loss prevention features such as sprinklers
Type of hazards to insure
There may be additional variables depending on the insurance company so be sure to
ask your insurance broker for a list of all available discounts for the insurance
companies they represent so that you receive all the discounts you are entitled.