Homeowners insurance isn't a luxury, it's a necessity. Read Home and Social's top tips helps you to find the right policy and cover.

What Is Buildings Insurance?

What Is Buildings Insurance?

The buildings insurance caters for your property in case of a disaster that might damage your house beyond repair. This insurance takes care of rebuilding costs but here’s the catch, the disaster must have been beyond your control, mostly caused by natural disasters such as earthquakes and lightning.  

In most cases, mortgage providers will require you to sign up for this as it will put them in a better and secure position to recover damages in the event of such losses. They look at it as a collateral or form of security for the mortgage that they provide you. 

Properties are prone to various forms of natural disasters and property owners need to have that kind of worry off their shoulders. That is where building insurance come in. Great building insurance policies go an extra mile to cover outdoor structures such as greenhouses, sheds, gazebos, decks and garages. Boundary walls, fences and gates are usually left out by most insurers and it is advisable that you understand the terms and conditions of the contract. 

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How much is homeowners insurance

How much is homeowners insurance

There are many factors that determine how much is homeowners insurance that you should take. Some of the factors are the value of your property and the extent of coverage. A home insurance policy contains a combination of six coverage types. They include:


•    Dwelling coverage to cover the home and other structures that are attached to it.
•    Other structures coverage for covering detached structures such as a detached garage, fences and other structures not attached to the house.
•    Personal possessions coverage for covering your personal items such as electronics and furniture.
•    Loss of use coverage ensures that you are provided with living costs when your home becomes uninhabitable due to the occurrence of an insured peril.
•    Personal liability provides cover for financial protection if you are held responsible for someone else injuries or damage of their property.
•    Medical payments cover medical bills if anyone is injured when in your property.


The value of these types of coverage determines how much is homeowners insurance, with the major ones being the coverage for dwellings and personal possessions. You should make sure that your policy has enough cover for your home structures, personal possessions, living expenses and liability to others who are injured while on your property.

Cost of each type of coverage

The coverage for dwellings should be enough to provide for full replacement cost of the home. That is why it is important for the homeowner to know how much the rebuilding cost of the dwelling is so that it can be insured for accordingly. You should also review your policy at least every two years to ensure that your coverage could still cover home replacement. This is because changes such as inflation and cost of materials take place and they make the amount you have insured your dwellings for not to be enough. Personal possessions coverage should be at about 50 or 75 percent of the dwellings coverage. It is also important to take an inventory of your possessions to find out if the amount is enough. The insured amount should be able to replace your personal possessions in case a disaster occurs. To protect your personal liability in case someone is injured in your property or your dog bites a visitor, the coverage should be between $100,000 to $300,000. In case you think you might require more than that, you can purchase umbrella coverage policy to cater for additional liability.

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Estimating how much is home insurance rebuilding cost

Estimating how much is home insurance rebuilding cost

Knowing how much is home insurance cost of home rebuilding is an important step to take when you want to insure your home. This is because in case a disaster strikes and your home is destroyed, your homeowners insurance policy can only pay for home rebuilding if you have insured it at 80 percent of the cost in the least. Although your insurance agent will calculate your home rebuilding cost using programs and several factors, you can also use some measures to get an estimate. This will help you to know how much is home insurance cost that you need to insure your home.

Below are some ways you can use to estimate the rebuilding cost of your home

Avoid using the market prices of the homes as the rebuilding costs. You may find that your home’s market value is higher or lower than the cost of rebuilding. If the price of homes is on the rise, your home may have a higher value than it would cost to build. On the other hand, if the market is down, it may cost more to rebuild a home than it would cost to buy a similar home. You should also note that insurance companies include the cost of removing debris of the destroyed home in their calculation for rebuilding cost.

You may use online calculators to know how much is house insurance rebuilding cost for your home. Make sure you have the specific details of the home such as the square footage, number of kitchens and bathrooms and their quality, the number of stories, attached garage and a deck. These will help you to generate a close estimate. Remember the figure is just an estimate. A contractor can also help you in calculating the cost. You should note that the cost of building a new home might be different from rebuilding cost due to the aspect of debris removal. Rebuilding also replaces the home exact features and it may be expensive to replace an older home that has a high ceiling, large windows and a thick wooden trim.

How much is house insurance cost of rebuilding also depends on the location of your home? If you evaluate your local economy, you can get an idea of how much it would cost to rebuild your home. For instance, rebuilding a condo in a city like Manhattan is more expensive than for rebuilding a ranch in Ohio. What insurance companies do to determine the rebuilding cost is to develop programs that have rebuilding cost for each zip code. Information about how much home insurance rebuilding cost is crucial because it can mean the difference between your home being fully replaced or not. You should also make sure that you check with your insurer after every one or two years to get a rebuilding cost estimate. This will ensure that you have the right coverage that can cover your home for rebuilding in case an insured disaster strike.

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Factors to consider when calculating home insurance rates

Factors to consider when calculating home insurance rates

Many factors determine the home insurance rates that a homeowner should pay. It is however important to know the rates you should pay so that you can take enough coverage for your home and contents. Having a home insurance helps to cover the home in case fire, theft and other disasters take place destroying the home. Getting enough coverage will mean that the insuring company will compensate you for an amount enough to repair or replace your home. Mortgage lenders also require a homeowner to have homeowner’s insurance coverage and they also determine the minimum coverage.


Below are some of the factors that will determine your home insurance rates.

•    Mortgage lenders requirement -When taking a mortgage, you are required to have a policy to protect your home in case a peril takes place. The lender wants to ensure that the home is protected and they can get back their investment even if a disaster destroys the home. The lender provides requirements on what should be covered by the policy and the coverage limits. What the lender requests is part of what determines the home insurance price that you should pay.

•    Home factors – there are factors in the home that affect the rates of insurance. Some of the factors include the condition of the home and the systems, the age of the house and its value. If the home has old systems that are not maintained, you will end up paying a higher insurance price. An old home is charged higher premiums and so is a high valued home. Other factors contributing to the level of insurance rates is the personal items and valuables that are in the home in case you will include personal possessions coverage. The higher is the value of your personal possessions, the higher would be the rates.

•    The area you live- if your residence is in high risk area that is susceptible  to disasters such as hurricanes, earthquakes and floods, then your home insurance price will be higher. This is because you will need additional coverage to cover the disasters because the regular homeowner’s policy may not cover them.

•    The amount of deductible- if you opt to pay a high deductible, then your insurance rates will be low. However, when choosing a deductible, it is important to assess yourself if you can manage to pay the deductible in case a peril occurs. Do not just choose a high deductible so that you can have lower premiums because in case there is a peril, the deductible is the amount you should pay. You can know how much deductible you can afford if you look at your budget and the amount of expenses that you can handle. You may also have a savings account that you can use the money to pay the deductible.

The above factors will help you in calculating how much it will cost you to insure your home. Using them, you can compare quotes from different insurance companies to see which one provides the best coverage.

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The difference between landlord home insurance and homeowners

The difference between landlord home insurance and homeowners

Landlord home insurance and homeowners insurance both protect the home structure from damage caused by insured perils. However, home insurance for landlords provide greater coverage better than what a rider on homeowners policy would provide. It is suitable for properties for rent, even if it is on your home that you plan to rent for a few weeks per year.

What landlord insurance entails

This insurance is for protecting rental property structure and the landlord’s personal property. The tenant should get their own policy for protecting their personal property. This insurance has three categories with DP1 being the basic with cash value coverage for common perils such as fire, wind, hail and vandalism. DP2 covers more perils that the policy names while DP3 provides coverage on replacement cost basis for all the perils that have not been excluded from the policy.

How the landlords and homeowners insurance differs

Home insurance for landlords has liability coverage included and has higher coverage limits to protect the landlord in case someone gets injured while on the property. It is recommended that landlords should have liability coverage of at least 1 million US dollars. With the homeowners insurance, the liability coverage is included at an additional fee as an add on. Because the insurance is for rental property, it also protects against lost income in case an insured peril makes the property uninhabitable. The lost income cover only compensates the landlord if income is lost due to a peril that has been covered and not because the property is vacant. On the other hand, a homeowners insurance does not provide cover if you have lost income due to a peril making your home uninhabitable. Landlord home insurance provides additional coverage more than what the homeowners insurance does. This makes have a higher cost by about 10 to 20%. However, there are measures you can take to reduce the cost of premiums, such as using one insurance company to meet all your insurance needs. Insurers offer discounts to those with bundled services. You may also require the tenants to get renters insurance to protect their personal possessions and liability coverage in the event their guests are injured on the property.

Benefits of using home insurance for landlords

If you plan to rent your property even if it is in the home you are living in, it is important to take landlord insurance. This is because this type of insurance provides coverage that is not given by the homeowners insurance. You may also get into loggerheads with the insurance company if it finds out that you are renting your home while using homeowners instead of landlords insurance. Landlord insurance provides coverage on the structures only and not the personal possessions of the tenants and therefore reducing the premium you should have paid on possessions. You may cover your possessions if they are in the premises. The liability coverage is more that means in case the tenants get injured on the premises, there is enough coverage for it unlike in homeowners.

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