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Homeowners Insurance 101: What You Need to Know

Homeowners Insurance 101: What You Need to Know


Next to your home inspection from TLC Home Inspections, homeowners insurance is the next best investment for protecting your property. However, purchasing this type of insurance can be overwhelming, especially if you’re unsure how it works and what it covers. To help you understand homeowners insurance better, we’ve put together this guide that covers what you need to know to make informed decisions when purchasing a policy.

Coverage Types

Homeowners insurance typically covers a wide range of losses resulting from various risks. The two primary coverage types are dwelling coverage and personal property coverage. Dwelling coverage insures your home’s physical structure, such as walls and roof, if damaged or destroyed. Personal property coverage, on the other hand, protects your belongings from theft or damage caused by covered perils like fire, tornadoes, or windstorms.

Coverage Limits

When purchasing an insurance policy, you need to decide on the amount of coverage you need. Your policy’s coverage limits determine the amount the insurance company will pay out in case of a covered loss. The higher the coverage limit, the higher the premium. It’s essential to strike a balance between having enough coverage to protect your investment and not overpaying for your policy.


A deductible is the amount you pay out of pocket for covered losses before the insurance company starts paying. Like coverage limits, the deductible amount affects your premium. A higher deductible means a lower premium but more out-of-pocket costs if you file a claim. Lower deductibles result in higher premiums but less out-of-pocket costs if you experience an insured loss.

Additional Coverages

Keep in mind that insurance policies may come with additional coverages that provide added protection beyond the standard coverage types. These coverages may include liability coverage, which protects against claims of bodily injury or property damage you’re responsible for, and loss-of-use coverage, which pays for additional living expenses if your home becomes uninhabitable due to a covered loss.

Invest in Your Home Properly

Whether you’re looking to buy a new home or have already purchased one in Austin, TX, homeowners insurance is a crucial part of protecting your investment. But, before you can insure something, make sure you know its condition with a home inspection from TLC Home Inspections. We’ll look in every nook and cranny, scouring for termites, mold, and other hidden damage. So, schedule your inspection with us today at (512) 515-3686.

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