A Guide to Choosing Homeowners Insurance Coverage in Cincinnati

Around 6% of homes have a homeowners insurance claim each year due to theft, storms, fires, and more. Homeowners insurance is essential to protecting you and your home in the event of an unfortunate circumstance. If you live in the Cincinnati area, you need to be prepared for natural disasters like flooding and tornados.

Homeowners put a lot of time and effort into purchasing a new home. Finding a reputable homeowners insurance coverage company is sometimes an afterthought. You need to put careful consideration into the company you partner with.

This guide will discuss how to find the best homeowners insurance policy in Cincinnati. We’ll talk about what features are included in a basic policy and what add-on coverage options are available.

What’s Homeowners Insurance Coverage?

A homeowners insurance policy covers the cost to replace or repair your home and your belongings if they’re damaged. The types of events that your policy might cover include:

  • Vandalism
  • Theft
  • Water
  • Weather
  • Smoke
  • Fire

Some basic homeowners insurance policies can include the replacement or repair of cooling and heating systems if they get damaged during the event. Your policy will typically cover personal property that’s destroyed, stolen, or damaged. It might also pay for legal and medical expenses if another person gets injured at your home.

Is Homeowners Insurance Essential?

While a homeowners insurance policy isn’t mandatory if you own a home, your mortgage lender will require you to take out a policy if you’re getting a loan. They’ll typically ask that you get a policy that covers 100% of your home’s cost.

Your mortgage lender wants to protect their investment if a catastrophic vent occurs. If you paid off your mortgage or paid cash for your home, you technically don’t need a policy. However, it’s still good practice to have the policy to protect your investment if something happens.

What’s Included in Homeowners Insurance?

Homeowners’ insurance policies are customizable to your preferences. There are standard elements that you’ll find in basic policies.

Damage to the Exterior or Interior of Your Home

Your insurance company will compensate you if the inside or outside of your house has been damaged due to a disaster. You can use those funds to completely rebuild or repair your home.

Some events that aren’t typically covered in a basic policy include:

  • Poor home maintenance
  • Floods
  • Earthquakes

You might also need separate policies to cover freestanding structures like a shed or garage. You might encounter a higher premium if you want coverage for valuable items, including jewelry and art.

Personal Liability Coverage

Personal liability coverage provides you with protection against lawsuits filed by other people. This type of coverage also includes your pets. For example, if your dog bites your neighbor, your insurance will cover her medical expenses.

Most insurance policies provide you with $100,000 of coverage. It’s recommended to bump that coverage amount up to $300,000 so you’re fully covered.

Rental or Hotel Costs

Your policy will cover the cost if you’re forced to rent a home or stay in a hotel while your home is being repaired. This is referred to as “additional living expenses.” You’ll get reimbursed for:

  • Hotel room
  • Rent
  • Meals
  • Incidental costs

Keep in mind that your insurance company will provide you with total and daily limits. You might not get reimbursed if you book a hotel room at the fanciest place in Cincinnati.

What Are the Different Types of Insurance?

There are three different levels of homeowners insurance coverage. The more coverage you have, the higher your premium will be.

Actual Cash Value

This type of coverage will cover the entire cost of your home. It’ll also cover the value of your belongings after subtracting depreciation. You’ll get compensated for what the item is currently worth instead of the amount you paid for it.

Replacement Cost

You’ll get compensated for the actual cash value of your possessions and home. The insurance company won’t deduct the depreciation. You can rebuild, replace, and repair your house and belongings at their original value.

Guaranteed Replacement Cost or Value

This is the most comprehensive type of homeowners insurance policy. Your insurance company will pay for the cost of repairs, rebuilding, or replacement even if it’s more than the limit of your policy.

There is a limit to how much extra the insurance company will cover. It’s typically 20-25% higher than your policy limit.

What’s Not Included in Homeowners Insurance?

Most insurance companies offer various add-ons to their standard policies. Some of these add-ons can provide coverage for:

  • Earthquakes
  • Sewer lines
  • Floods
  • Manufactured homes
  • Mobile homes

How to Choose an Insurance Company

Comparing providers is essential to finding the best option for your budget and needs. There are several factors you need to take into account when shopping for insurance companies.

Your Location

The price for homeowners insurance varies by zip code, city, and state. The same policy might cost less in one area of Cincinnati than it would in another. For example, a house in a high-crime neighborhood would be more expensive than in a community with fewer incidents.

Some things you should consider about your location include:

  • Weather events
  • Distance to fire stations
  • Crime rates

Evaluate Third-Party Ratings

Third-party organizations rate and review most homeowners insurance companies. You can look at their J.D. Power ratings to discover their customer satisfaction rate. That rating takes into account the following:

  • Claim handling
  • Agent interactions
  • Cost

Compare Quotes

Every insurance company charges a different price for its policies. Look at a few different quotes from multiple companies for the same coverage. That’ll help you discover which policy is less expensive.

Some insurance companies might offer your discounts. You might receive a premium discount for the following:

  • Paying your yearly premium in full
  • Bundling an auto and home policy
  • Not having recent claims
  • Installing a security system

Get a Quote for Homeowners Insurance Coverage in Cincinnati

Choosing your insurance is a big part of homeownership. Not having the right policy can leave you and your property vulnerable. Protect your investment by choosing the right policy to fit your needs.

Do you need help getting homeowners insurance coverage in Cincinnati? RJL Insurance Group is here to help. Contact us to get a quote.

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