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Purchasing homeowners insurance is a “necessary evil” when it comes to responsible home ownership. And in a worst case scenario, it can mean the difference between financial safety and financial ruin. No matter how you look at it, protecting your home with a comprehensive homeowners insurance policy is a sound investment.
The HO-3 policy is pretty much the gold standard across the homeowners insurance industry. It offers financial coverage for your dwelling, all of your personal belongings within, and even liability coverage for accidents. Medical payments are a part of the package, too. Within the state of Nevada, the typical price for a home ranges between $235,000 to $270,000. For this reason, our table below is an example of how much coverage you would need on a HO-3 policy for a $250,000 home:
|Types of Coverage||Coverage Amount|
|Replacement Cost (Dwelling)||$250,000|
|Replacement Cost (Contents)||$125,000|
Granted, these are rough estimates of what your actual coverage needs might be. Your exact requirements will be very different from a fellow resident living a hundred miles away, or even your next door neighbor’s. Below, we’ll give you helpful advice for determining what your needs are, and what you can do to shop around for the best premium.
Nevada is a much larger state than most people think. It covers nearly as many latitudes as its neighbor to the west, california. The northern parts of the state can see some pretty decent snowfall during the winter months, whereas the southern parts are dry and arid, leaving them vulnerable to the occasional flash flood. Much like its varied geography, home insurance premiums in Nevada can be just as varied across the state.
You’re going to want to be thorough when you do your comparison shopping. The rates in Nevada can vary wildly from one company to another. Depending on where you live, your personal circumstances, and the insurer who underwrites your policy, your premium could be double – or dangerously close to triple – what you could be paying.
The only way you’re technically required to purchase homeowners insurance in Nevada is if your mortgage lender mandates it as a condition of your loan. There are no state or federal laws that say you have to have it. So if you own your home and aren’t making any payments on it to a bank, you could go without…but if something catastrophic happened to your house or property, you would be responsible for the financial cost of replacing property and making repairs.
If you’re going to buy homeowners insurance, you’re going to have to take a home inventory. It’s the best way to make sure exactly as much coverage as you need, without going overboard or underestimating your needs. Either one of those scenarios could result in financial disaster. Underestimating leads to paltry claims getting paid out in the event of a disaster. Overestimating means that you’ll end up wasting thousands – or more – on unnecessarily high premiums.
Most Nevada homeowners insurance policies will incorporate Dwelling and Personal Property Coverage, Liability Coverage, Medical Payments Coverage, and Additional Living Expenses Coverage into a standard policy. You may also need coverage for:
It’s tricky to know how much you can expect to receive from your insurer after you file a claim. If your claim is accepted, then the amount of funds you receive will be determined in one of two ways: either by replacement cost, or actual cash value. If you get the actual cash value, which is usually reserved for your personal property or belongings inside the house, you will receive the amount of its replacement costs minus depreciation; and the older it is, the more depreciation there will be. Replacement cost, usually reserved for damages to your home structure, will cover 100% of funds necessary to repair or replace any damage or destruction.
Thankfully, most homeowners insurance companies don’t use your entire credit history to evaluate how much to charge you for your annual premium. Likewise, they won’t use every single element of your recent credit history during your evaluation. They will come up with a composite of certain aspects of your recent credit history known as a Credit-Based Insurance Score.
In Nevada, however, it gets a little more complicated than that. Some companies use your CBIS to during the underwriting process when they decide whether or not to sell you a policy. Others use your score during the rating process, which is when they decide how much to charge you for your premium. Still other companies use your score during both phases, and some companies won’t use your score at all. You can find out which providers use what in the links below.
For more information, feel free to click any of the links you see in this article. They all lead to more detailed information about homeowner’s insurance, specifics on purchasing a policy, and how to find the best deal. You should also contact local resources in your state, such as:
Or contact them directly through the following resources:
Carson City office:
Phone: (775) 687-0700 | Fax: (775) 687-0787
Consumer Compliance & Licensing Fax: (775) 687-0797
1818 E. College Pkwy., Suite 103
Carson City, NV 89706
Las Vegas office:
Phone:(702) 486-4009 | Fax: (702) 486-4007
3300 W. Sahara Ave., Suite 275
Las Vegas, NV 89102
Division of Insurance toll-free: (888) 872-3234