Homeowners Insurance

Homeowners Insurance Quote

 

Homes in Minnesota have a median value of around $240,000, and the median selling price is more than $250,000. To buy, you must save for the down payment, and usually must factor a mortgage into your budget. It’s easy to understand why it is important to protect your future financial. A properly crafted homeowners insurance policy will help you do so.  

Homeowners insurance will offer security for your property, belongings, liability and financial outlook. With a little help from the dedicated agents at Focal Point Insurance, you can get a policy that will guarantee protection for both your house and your home.  

How does homeowners insurance work?  

If something threatens your property or finances, then you will want to fight back. For the cost of a regular premium, homeowners insurance can compensate you for a variety of unexpected losses.  

Your policy might pay for damage to your house or possessions after perils like fires, severe weather, vandalism, theft and more. It can also help cover lawsuit costs when you accidentally harm someone else. Both your property value and monetary security will remain intact despite these setbacks. 

What coverage will my policy offer?  

Though all homeowners policies vary, most offer several benefits:  

• Structure Coverage: Damage to your house will have coverage.   
• Other Structures Coverage: Your policy can insure structures not attached to the home, like carports, storage sheds, or fences. 
• Possessions Coverage: You can insure personal belongings (clothing, electronics, furniture, etc.) with this coverage.  
• Bodily Injury Liability Coverage: If your negligence causes injury to a third party who doesn’t live in your home (like a neighbor), coverage can help them pay medical bills and other costs.  
• Property Damage Liability Coverage: When you damage to someone else’s property, this coverage can pay for the repairs. It can apply both when you are on and off your property. 
• Pet Liability Coverage: If your pet bites someone or damages their property, this liability policy will help them with their recovery costs. Some breeds will not have coverage, however. 
• Legal Assistance: If someone sues you, then your liability coverage can help you cover the cost of going to court, hiring counsel and settling. 
• Accidental Medical Payments (MedPay) Coverage: When someone gets hurt in your home, they might be able to file against this coverage, even if the injury was not your fault.
• Loss of Use Coverage: After a damaging event at home, you might have to move out temporarily. This coverage can help supplement your living expenses for a time.  

How much homeowners insurance do I need?  

Every homeowners policy must adequately address the cost risk of the policyholder’s property and liabilities. When buying, choose enough coverage to minimize financial loss after household problems.  

• Structure insurance should offer replacement cost coverage. This will pay enough to help you rebuild your home to the way it was before the accident. 
• When insuring possessions, choose coverage that reflects the cost you paid for belongings. Most possessions policies pay based on actual cash value (ACV). This is a damaged item’s used value at the time of the loss. However, some policies offer replacement cost possessions coverage.  
• When choosing liability limits, consider your overall net worth. Ask yourself what someone could take from you if they sue you in a liability suit? Choose limits that allow you to settle a claim using your insurance, rather than your own assets. 

What is not covered by standard homeowners insurance?  

All home insurance policies will include limits on what they will cover. However, there are solutions. 

• Policies usually includes deductibles. If the cost of damage is less than the deductible cost, then your policy will not pay. Always choose deductibles you can afford to pay out of pocket.  
• Certain items, like jewelry, art, collectibles, musical instruments or electronics might have no coverage. Other policies limit the amount of money you can receive for a damage claim. To cover such items adequately, buy a high-value item endorsement.  
• Damage from certain events, notably floods, won’t have coverage. To get flood insurance, you will have to buy coverage separately, such as from the National Flood Insurance Program (NFIP). 
• Home damage from normal wear & tear will usually have no coverage. Foliage and outdoor items will usually not, either. 

Is homeowners insurance required in Minnesota? 

To qualify for a mortgage, you will usually have to buy a homeowners policy. The policy will address the capital that the lender has invested in your home. 

How much does homeowners insurance cost?  

Minnesota homeowners policies usually cost about $3,000 per year, which is higher than the national average. However, specific factors like your home’s value, the policy you buy, and the home’s location can influence your costs.  

Keep in mind, if you make a lot of claims on your policy, then you might see your rates rise. Some insurers might terminate your coverage because you have made excessive claims.   

If you have concerns about the impact a claim will make on your insurability, then don’t hesitate to work with one of our agents. We’re experts in all aspects of homeowners insurance, we will help you choose adequate coverage to address your risks.