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Mythbusting Homeowners Insurance:

What You Actually Need to Know

Homeowners insurance is one of the most important types of insurance you can buy. It protects your home and your belongings from a variety of unexpected events, such as fire, theft, and weather damage. Think they'll NEVER happen to you? Think again. If there's a will, there's a way. Think mother nature, other people's negligence and other stuff you can't even make up.

Without homeowners insurance, you could be financially responsible for the cost of repairing or replacing your home and belongings if they are damaged or destroyed. This could be a devastating financial blow, especially if you have a mortgage on your home.

What does homeowners insurance cover?

Homeowners insurance policies typically cover the following:

  • The structure of your home, including the foundation, walls, roof, and interior and exterior fixtures

  • Your personal belongings, such as furniture, appliances, clothing, and electronics

  • Additional living expenses, such as the cost of staying in a hotel if your home is uninhabitable after a covered loss

  • Liability coverage for bodily injury or property damage to others that is caused by you or your family members

How much homeowners insurance do you need?

This isn't an easy one to answer because of all the details involved. First, know that you should be talking to your insurance professional to walk you through all the options and details. The amount of homeowners insurance you need will depend on the value of your home and belongings. You should also consider the risks you face, such as the crime rate in your area and the likelihood of natural disasters.

It is important to review your homeowners insurance coverage regularly to make sure that you have enough coverage to meet your needs. You should also update your coverage if you make any major changes to your home or belongings.

How to choose a homeowners insurance policy

When choosing a homeowners insurance policy, it is important to compare quotes from multiple insurance companies. You should also read the policy carefully to understand what is and is not covered.

Here are some tips for choosing a homeowners insurance policy:

  • Get quotes from at least three different insurance companies.

  • Compare the coverage offered by each company.

  • Make sure that the policy covers all of the risks that you are concerned about.

  • Ask about discounts that may be available, such as discounts for bundling multiple policies or for having a security system.

Tips for filing a homeowners insurance claim

If you need to file a homeowners insurance claim, be sure to keep the following in mind:

  • Contact your insurance company as soon as possible after the loss occurs.

  • Document the damage to your home and belongings. Take photos and videos if possible.

  • Keep a detailed record of all expenses related to the loss.

  • Be prepared to provide your insurance company with a copy of your police report if the loss was caused by a crime.


Homeowners insurance is an important investment that can protect you from financial hardship in the event of an unexpected loss. By following the tips above, you can choose the right homeowners insurance policy for your needs and file a claim successfully if needed.

Additional tips:

  • Consider purchasing flood insurance if you live in an area that is at risk of flooding. Flood insurance is not covered by most homeowners insurance policies.

  • Make sure to update your homeowners insurance coverage regularly to reflect any changes to your home or belongings.

  • Review your homeowners insurance policy with your insurance agent every year to make sure that you understand your coverage and that you have enough coverage to meet your needs.

If you haven't checked out my PennyWise Financial Podcast, watch a look at a clip from our latest show with guest Liz Biehler from The Liz Harley Agency with Allstate in Victor, NY. Scroll down to watch the entire episode. It's available on all major podcast platforms like Apple, Google and Spotify and YouTube.

👇Or click below to watch the full Episode

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