Anyone who buys a house needs homeowners insurance. Think of it as a seatbelt against life’s costly dangers. With a policy in place, you might receive financial aid following:

• Damage from storms, house fires or a variety of other disasters.
• Acts of theft or vandalism that damage the home or possessions.
• Lawsuits brought against you by someone who claims you or your family negligently caused them injuries them or property damage.

Because it is there to help you pay for problems on your property, think of your home insurance as protection for your investment. Most lenders require you to carry coverage before they will issue a loan, and you often must have it before you can close the deal. Overall, it is a key to your ownership toolkit.

To get the most effective homeowners policy, you will want to have several types of protection:

• Dwelling Insurance: This coverage will compensate you for damage to your house. Most dwelling coverage pays the replacement cost value necessary to repair the property.
• Other Structure Insurance: Structures on your property that are not attached to your home, such as gazebos, storage sheds or carports will have coverage.
• Possessions Insurance: Your belongings (clothes, furniture, electronics and other items) will have coverage. Most policies pay for possessions based on their actual cash values (ACV) at the time of the damage. You can buy expanded coverage for expensive or collectible items.
• Liability Insurance: When the homeowner or other household residents negligently harm someone else, this coverage can compensate the affected person. For example, it might help you repay a neighbor who gets hurt on your property and then sues you for their injury costs.
• Loss of Use Insurance: Following a problem at home, you might have to move out while the property undergoes repairs. Your policy can help you cover living expenses during that time.

All policies will include coverage limits, deductibles, exclusions and endorsement options. However, each unique plan’s terms and conditions can vary widely among insurance carriers. You will have multiple policies to choose from when searching for the right one for your own property.

On average, homeowners insurance costs about $900 - $1,000 per year in Virginia and North Carolina. However, multiple factors might influence your own premium including the value of your home, your chosen coverage, your credit rating and your home’s location. All premiums come down to risk. The more likely you are to be a cost risk to the insurer, the more you might pay.

Because your home ownership risks will change over time, so too might your premiums. Factors that might increase your rates include:

• Increasing your policy limits or buying expanded coverage.
• Decreasing your deductibles. By taking on a lower deductible yourself, you shift more of a cost burden onto the insurer.
• Making many claims on your policy.
• Completing extensive changes to the property that increase the home’s value.

Always be careful when choosing whether to make a claim on your policy. If you make too many claims for low-value damage, then you might see a rate increase. Instead, if you can save money and make some of your own repairs, then you can reserve an affordable homeowners policy for your most significant losses.