Homeowners Insurance
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Protect your house — and your possessions — with homeowners insurance through Progressive Home Advantage*. For homeowners, insurance protection is an important aspect of homeownership. Buying homeowners insurance, or home insurance, means buying protection for your home — both inside and out.
If you already know what kind of home insurance policy you need, get a homeowners insurance quote today.
What is homeowners insurance?
Homeowners insurance compensates you for losses to your home and your possessions inside it, so purchasing a homeowners insurance policy provides added security for your investment. Homeowners insurance also protects you if you're legally liable for someone's injuries on your property, as well as from financial losses caused by storms, fire, theft and other events outlined in your policy.
Different companies offer different homeowners insurance coverages, so choosing the right policy means finding the right mix of coverages to meet your needs.
Generally, a standard homeowners insurance policy protects the following:
- The physical structure of your home
- Structures on your property (storage sheds, pools, boathouses, etc.)
- Your personal property and belongings inside your home, up to specified limits
- Your liability or legal responsibility for any injuries and property damage you or your family members cause to other people
- Injuries to your household pets while inside your home
- Additional living expenses if a fire or other insured disaster leaves you temporarily unable to live in your home.
Often, for an additional fee, you can select optional homeowners insurance coverages, including:
- Higher limits of liability for property damage or bodily injury
- Replacement cost for personal property
- Protection for valuables (jewelry, watches, fur, etc.)
- Additional coverage for electronics or computer equipment.
To make shopping for the right homeowners insurance policy easier, take an inventory of what you own to decide what level of coverage makes you comfortable. Once you know your coverage level, get a homeowners insurance quote and choose the policy that's right for you.
What about townhouses?
If you own a townhouse, you can insure it with a homeowners insurance policy or an association master policy, depending on your situation. Some townhouse associations have master policies, in which case you should purchase a tenant homeowners insurance policy to insure your personal property. Other townhouse associations do not have master policies, which is when you should purchase a homeowners insurance policy for your unit. Check with your association to determine which type of policy you should purchase for your townhouse.
Home Insurance Coverage
Home Insurance Coverage — What Is Covered
Standard home insurance coverage policies provide the following types of coverage, up to the limits outlined in the policies:
- Dwelling — Pays for damage or destruction to your house and any unattached structures and buildings, such as fences, detached garages, and storage sheds.
- Personal Property — Covers the contents of your house, including furniture, clothing and appliances, if they are stolen, damaged, or destroyed.
- Liability — Protects you against financial loss if you are sued and found legally responsible for someone else's injury or property damage.
- Medical Payments — Covers medical bills for people hurt on your property. Medical Payments coverage also pays for some injuries that may happen away from your home, such as if your dog bites someone.
- Loss of Use — Pays for additional living expenses if your home is too damaged to live in during repairs. Most standard home insurance coverage pays 10 to 20 percent of the amount of your dwelling coverage.
You also can purchase the following optional home insurance coverages:
- Guaranteed Replacement Cost — Provides the most complete coverage for your home. Your home insurance company requires you to meet specific underwriting rules and conditions to qualify for this coverage. For instance, you may need to increase your home insurance amount on a monthly, quarterly or yearly basis to keep up with the inflation rate.
- Inflation Guard Endorsement — Automatically adjusts your home insurance limits during your policy period so they are at 80 percent or more of your home's replacement cost, which is the amount most home insurance companies require you to have. This coverage is beneficial if your home's replacement cost is increasing with inflation.
- Scheduled Personal Property Endorsement — Also called a personal article floater. With this coverage, possessions, including jewelry, furs, stamps, coins, guns, computers, antiques, etc., are covered. Each article is itemized and detailed in the floater, and excluded perils also are outlined. Personal article floaters often do not have deductibles.
- Increased Limits on Money and Securities — Increases coverage amounts for money, bank notes, securities, deeds and more.
- Secondary Residence Premises Endorsement — Covers a secondary residence, such as a summer home. Insurance for secondary homes is not automatically provided by the home insurance policy you have for your primary or principal residence, so it's important to consider this endorsement if you own more than one home.
- Watercraft Endorsement — Expands personal liability and medical payments coverage for small sailboats and outboard motor boats only.
- Theft Coverage Protection Endorsement — If items from your motor vehicle, trailer or watercraft are stolen, theft coverage protection broadens theft coverage without requiring proof of forcible entry.
- Credit Card Forgery and Depositors Forgery Coverage Endorsement — Coverage applies if your credit cards are lost, stolen or used without permission, or if someone forges a check, draft, promissory note, etc. Certain restrictions apply and are noted in your home insurance policy.
Home Insurance Coverage — What Isn't Covered
A standard homeowners policy may not protect you from:
- Flood, Earthquake, Nuclear Accident and War — To protect against unforeseen and uncontrollable events like these, you can purchase hazard insurance through your home insurance policy.
- Windstorm Damage — In certain areas (mostly coastal) of some states, standard home insurance coverage does not cover damage caused by windstorms and hail. Check your policy information to see if windstorm damage is covered in your area.
Questions to Ask Before You Buy Home Insurance
Is flood insurance required, and what kind of flood insurance is available?
If you live in a flood plain and you have a mortgage, you may be required to have flood insurance. Depending on where your home is located, you may qualify for flood insurance through the National Flood Insurance Program. Some insurance companies also offer flood insurance. Keep in mind that your home could sustain flood damage by other means, such as broken pipes, even if it's not located in a flood plain, so consider this coverage if you are eligible for it.Is earthquake insurance available?
Most insurance companies offer earthquake insurance for an additional cost. This insurance generally is attached to your home insurance policy as an endorsement. If you live in California, coverage is available from the California Earthquake Authority.These are just a couple of the key questions to ask when purchasing home insurance. You may also consider water back-up, sump pump overflow, identity theft protection and other coverages that may be specific to your situation.How Much Home Insurance Do You Need?
You generally have three options to choose from when deciding how much home insurance you need, and each of these options provides a different level of coverage for your home:- Actual Cash Value — Pays for the cost to replace damaged property while factoring in depreciation amounts. For home insurance policies, Actual Cash Value applies unless a policy states that Replacement Cost or Guaranteed Replacement Cost has been chosen.
- Replacement Cost — Pays for the cost to replace damaged property without factoring in deductions for depreciation, but payment is limited to a maximum dollar amount.
- Guaranteed Replacement Cost — Pays the full cost of replacing damaged property, with no deduction for depreciation and no dollar limit. Guaranteed Replacement Cost is not available in all states, and most companies limit the coverage to 120 percent of the cost to rebuild your home. Allowing for this amount protects you in cases of increased construction costs or other building-related fees due to inflation.
You can determine a rough estimate of what it would cost to rebuild your home by following this equation:Local building costs per square foot x Total square footage of your home = Cost to rebuild your home.Your local builders association or a real estate appraiser can provide you with local building costs for your estimate.Homeowners Insurance Terms and Definitions
The homeowners insurance terms and definitions listed below will help you understand what you're buying when you shop for homeowners insurance, condo insurance or renters insurance.Appraisal
An evaluation of a home insurance property claim by an authorized person to determine property value or damaged property value.Cancellation
The termination of a home insurance policy during the policy term. An insurance company can only cancel a home insurance policy for reasons stated in the policy and permitted under the law of the state in which the policyholder resides.Claim
A policyholder's request for reimbursement from an insurance company under a home insurance policy for a loss to property.Deductible
The amount a home insurance policyholder must pay out of pocket for a covered claim.Depreciation
The estimated decrease in property value over time due to wear and tear, aging and other related factors.Endorsement
A provision or document added to a home insurance policy that changes the original coverage offered in the policy.Exclusion
Certain property, persons or circumstances noted in a policy as not covered by a home insurance policy.Group Policy
A home insurance policy sold through an employment-based group, association or special group insurance trust in which members are included under one master policy. Individuals receive certificates of coverage from the group policy.Independent Agent or Producer
An insurance agent or producer who represents more than one insurer.Individual Policy
A home insurance policy sold directly to an individual, often through direct mail or phone solicitation. Individual policies do not require people to be members of an employment-based group, association or special group insurance trust.Inflation Protection
Automatically adjusts your home insurance policy limits to account for increases in costs to repair property.Insurance
A contract in which a policyholder pays a set amount to an insurance company for protection against specified losses or perils.Lapse
Occurs when a policyholder does not pay or pays less than the agreed amount for a home insurance policy premium. Often, termination of the policy results from a lapse.Liability Coverage
Covers losses that an insured person is legally liable for due to negligence or other situations outlined in a home insurance policy.Market Value
The current value of your home, including the price of land.Nonrenew Insurance
An insurance company's decision not to renew a home insurance policy after the current term ends. Companies must appropriately notify policyholders prior to nonrenewing coverage.Peril
The exposure to or cause of a possible loss, such as an injury, destroyed or lost property, etc.Personal Property
All tangible property (other than land) that is either temporary or movable in some way, such as furniture, jewelry, electronics, etc.Policy
A written contract for insurance between an insurer and a policyholder.Premium
The price a home insurance company charges for a specified risk over a specified period of time.Property Coverage Insurance
Protects personal property and land against loss or damage, as outlined in a home insurance policy.Real or Tangible Property
Land, as well as anything permanently attached to, embedded in or growing on it.Replacement Cost Coverage (on Dwelling)
Pays for the cost to replace damaged property or structures without factoring in deductions for depreciation, but payment is limited to a maximum dollar amount.Replacement Cost Coverage (on Contents)
Pays for the cost to replace damaged personal property or items at current costs without factoring in deductions for depreciation.Sub-limit
A specified amount that is less than the maximum limits on a home insurance policy. Sub-limits are noted for specified coverages or types of property.Underwriting
The process an insurance company uses to determine if someone is eligible for insurance and, if so, how much that person should pay for insurance.Homeowners Insurance FAQ
Below is a list of frequently asked questions about homeowners insurance. If you have questions that aren't answered in this FAQ, please contact Progressive 24/7 at 1-800-PROGRESSIVE (1-800-776-4737), and a licensed insurance representative can assist you.What factors can affect homeowners insurance premiums?
The following factors can affect your homeowners insurance premium:- Home Features and Characteristics — Your home's age, type of structure, wiring, roof, garage, etc., can affect your homeowners insurance premium. Older homes can often cost more to insure, and those costs can differ depending on whether your home is brick, frame, stone or has synthetic siding.
- Location — Where your home is located can change your homeowners insurance premium. For instance, your home insurance rate can be affected if your home is in close proximity to a fire station; is exposed to extreme weather, such as hurricanes, tornadoes or earthquakes; or is in a neighborhood more prone to theft.
- Protective Devices — Burglar alarm systems, smoke detectors, fire extinguishers, sprinkler systems and deadbolt locks can lower your homeowners insurance premium.
- Personal Factors — What you do can affect your homeowners insurance premium, too. For instance, smokers may pay more for home insurance than nonsmokers. A good credit history also can lower what you pay for home insurance.
- Claims History — If you have a history of claims on a homeowners insurance policy, you may pay a higher premium.
Am I required to have homeowners insurance if I own a home?
Unlike driving a car, you can legally own a home without homeowners insurance. However, if you finance your home with a mortgage, your lender most likely will require you to have home insurance coverage to protect your home in case of damage cause by unforeseen circumstances, such as fires or natural disasters.If you live in an area that is prone to flooding or earthquakes, your lender may also require you to purchase flood insurance or earthquake insurance.If you purchase a condominium or co-op, your board may require you to buy condominium insurance or home insurance. Be sure to check with your board to see what type of policy is required.After you pay off your mortgage, you aren't required to have home insurance. However, you should keep your home insurance policy active to avoid risking what you've invested in your home.Why should I complete a home inventory?
When you purchase a home and a homeowners insurance policy, you should create an up-to-date home inventory to expedite a claim settlement if you ever need to make one. With a complete home inventory, your insurance company can verify property easier, which makes settling your claim easier. Plus, you can easily verify losses for your income tax return with an updated home inventory.How do I complete a home inventory?
Start your home inventory by making a list of your possessions, describing each item, and noting the make and model and where each item was purchased. Include sales receipts, purchase contracts and appraisals if you have them, too. Organize clothing into categories for easier reference.A few home inventory organization tips:- Remember to list big-ticket items like jewelry, artwork and collectibles.
- Take pictures of rooms and important individual items.
- Videotape your home by walking through it and describing the contents throughout the house.
- Save an inventory list on your personal computer and store it on a separate disk or drive.
- Put all your photos, lists and videotape documentation in a safe deposit box.
What's the difference between canceling and nonrenewing a homeowners insurance policy?
Canceling a homeowners insurance policy and choosing not to renew it are two very different actions an insurance company can take.Typically, insurance companies can only cancel an active policy if one or all of the following occurred:- The policy has been in force less than 60 days
- You fail to pay the premium
- You commit fraud or made serious misrepresentations on your application
Nonrenewing a homeowners insurance policy is a decision you or your insurance company can make to discontinue coverage at the end of a policy term. Depending on your state, if your insurance company chooses to nonrenew your policy at the end of the policy term, it must notify you and provide an explanation within a specified time period. You can contact your company's consumer affairs division if you disagree with the reason or want further explanation.What parts make up a homeowners insurance policy?
Although homeowners insurance policies differ in their actual structure, most contain the same basic components:Declarations Page — Usually the first page of your homeowners insurance policy, it typically contains the following summary information:- Name and address of the insured
- Dollar amount of coverage in the policy
- Description of the insured property
- Cost of the insurance
- Name of the insurance company insuring the risk
- Contact information
Definitions — Explain the meaning of terms used in the policy.Coverage — Details the extent of protection for both property (house, structures, contents) and liability (bodily injury or property damage to others for which you are liable) in your homeowners insurance policy.Exclusions — Explanation of what is not covered by your homeowners insurance policy, under both property and liability coverage.Conditions — Outline the responsibilities of both the insured and insurance company under the policy. Your duties in the event of a loss and also the procedures the company will follow to settle any losses are detailed here.Endorsements — Riders, amendments or attachments that alter the standard coverage provided by your home insurance policy. If you choose endorsements for your policy, you may pay an additional premium for them.Homeowners Insurance Availability
You can buy homeowners insurance, underwritten by select insurance companies, directly through Progressive anywhere in the United States except Alaska and Florida.
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