District of Columbia Homeowners Insurance Guide

Homeowners throughout the nation need insurance to protect their home and their belongings. Depending on where you live, your average insurance rates could be drastically different from those in a neighboring state. Factors such as your home’s value, your ZIP code , geography/climate and even local regulations and restrictions can all affect the price of your homeowners insurance premiums. In the District of Columbia, for example, homeowners spend an average of $1,012 a year on their homeowners insurance premiums, which is the fifth-highest area in the nation. For comparison, Texas has the highest average premiums in the nation, at $1,409 annually; the national average is $804.

Your home insurance policy

While your individual policy could vary from that of your neighbor, you will likely have similar components to your home insurance coverage. Make sure you carefully review each of these factors before settling on home insurance coverage:

• Property protection: Depending on the extent of your policy, your property protection could be basic, covering your home in case of fire or robbery, or more extensive and cover damage caused by leaks, storms or other events.
• Specialty protection: You may or may not need flood insurance. To find out, ask your insurance agent for information on whether your home is located in a flood plain. Remember that standard policies will not cover your home in the event of a flood or earthquake.
• Liability protection: Your policy should provide some coverage to protect you in the event that you are subject to litigation related to a non-auto accident issue.
• Medical coverage: This coverage will protect you in the event that someone suffers an injury on your property.

When looking over your policy, remember that there are some factors beyond your control. In fact, the very type of dwelling in which you live and the financing for your home will dictate at least some of the coverage your insurance company is required to provide. Remember these factors when considering home insurance policies:

• Your mortgage lender: If you had your home financed, your lender will require that you provide proof of insurance. Remember that, legally, the bank owns your home. As a result, it wants protection in the event of a catastrophe at your home.
• Your type of property: If you live in a condominium or a townhome, your homeowners association might have existing insurance that covers most of your dwelling – remember that these types of properties have significant “common areas” that mean that the community as a whole owns property, and not individual homeowners per se. If you own a condominium, for example, your individual homeowners insurance costs could be relatively low; you will pay into the collective community insurance costs in your monthly HOA dues. Be sure to read over your community’s policy with your insurance agent to calculate how much coverage you need individually.
• Competitive quotes: No matter the situation, make sure you receive several competitive quotes from multiple insurance companies to verify that you’re receiving the best coverage at the best price. If cost is an issue, you may want to consider raising your deductible to save on your premiums.