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Homeowners Insurance Guide: Coverage, Costs & Shopping Tips
What homeowners insurance covers, replacement cost vs actual cash value, and how to lower premiums.
July 9, 20267 min readBy MyWealthForge
Key Takeaways
- 1Standard policy: dwelling, personal property, liability, additional living expenses.
- 2Replacement cost pays to rebuild; actual cash value depreciates.
- 3Shop annually — rates vary 2x between insurers.
- 4Bundle with auto for 10–25% discount.
Homeowners insurance is required by lenders and protects your largest asset — but coverage gaps leave many underinsured.
Included in mortgage escrow payments.
Coverage Types
HO-3 is standard — covers everything except listed exclusions. Add flood and earthquake separately if needed.
Liability minimum $300k — consider umbrella insurance.
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