6 min read

Don't Let Homeownership Turn into a Horror Story: An Honest Guide to Home Insurance

Homeowners Guide to Home Insurance
Homeowners insurance, the first (and possibly most) important investment after your home purchase!

Congratulations, champion! You've braved the mortgage wars, wrestled with realtors, and finally snagged your very own castle (or, you know, a charming starter condo). But hold on to your housewarming margaritas – the real adventure is just beginning. Because let's face it, owning a home is basically like living in an episode of "Extreme Home Makeovers," except instead of Ty Pennington, you've got rogue squirrels, surprise plumbing issues, and the constant fear of a rogue asteroid landing in your living room.

That's where home insurance swoops in, cape billowing dramatically. It's your knight in shining armor, ready to shield you from the financial fallout of these (hopefully less apocalyptic) mishaps. But with a zillion different policies out there, wading through the jargon can feel like navigating a legal labyrinth blindfolded. Fear not, intrepid homeowner! This guide will be your sidekick, helping you decipher the home insurance code and find a homeowners insurance policy that won't make you want to tear your hair out.

First Things First: What Exactly Does Home Insurance Cover?

What does homeowners insurance cover?
Homeowners Insurance protects what's most important to you.

Think of home insurance as a superhero with multiple personalities. It can help protect:

Your Dwelling:

Dwelling coverage reimburses you at replacement value for your home. Imagine a rogue baseball or a mischievous raccoon taking aim at your castle walls (a.k.a. your house). Dwelling coverage in your homeowners insurance is your valiant knight, protecting your dwelling (the actual structure, not your jousting skills) from these perils and many more! Fire, theft, weather – you name it, dwelling coverage swoops in to help you rebuild your kingdom, or at least, your house. It's like having a superhero on retainer, minus the cape and tights (although, some superheroes wear capes AND tights, so who are we to judge?). Just remember, dwelling coverage is for the structure itself, not your precious belongings (read below).

Liability Protection:

Liability coverage acts as a financial safety net in your homeowners insurance policy. It safeguards your assets in the event someone is injured or their property is damaged on your property. This coverage can extend to a wide range of situations, from a slip and fall on your walkway to a guest accidentally damaging your belongings. By providing protection against potential lawsuits and settlements, liability coverage ensures peace of mind and helps you avoid personal financial burdens arising from unintentional incidents.

Don't Forget Your Belongings:

Imagine that rogue baseball (or raccoon!) we mentioned earlier crashes through your window and destroys your prized collection of gnome figurines (hey, no judgment!). Dwelling coverage protected the house, but what about your stuff?

Belongings coverage in your homeowners insurance is like a superhero for your treasures! Whether it's a rogue baseball, a mischievous raccoon, or even a burst pipe, this coverage reimburses you for the value of your belongings that are lost or damaged due to covered perils listed in your policy. So rest easy knowing your furniture, electronics, and even your gnome collection are protected by this content cavalry!

But Wait, There's More! The Nitty Gritty of Coverage Options

Homeowners insurance offers coverage of your dwelling in case of a fire
Homeowners insurance coverage helps in the worst case scenarios

Every policy is different, so it's crucial to understand what's included and what's an optional add-on. Here are some key things to consider:

Dwelling Coverage:

This is the big kahuna, covering the structure of your home itself. Make sure the amount of coverage reflects the rebuilding cost of your home, not just its market value. Dwelling coverage typically covers damages caused by:

    • Fire/smoke
    • Lightning strikes
    • Windstorms
    • Hail
    • Explosion
    • Vandalism and theft
    • Falling objects
    • Damage from a motor vehicle or aircraft
    • Damage caused by the weight of snow, sleet, or ice


Imagine your home insurance as a teammate – you chip in a little upfront (deductible) and they cover the rest (up to policy limits) in case of a covered event like a fire or theft. The deductible is the amount you pay out-of-pocket before your insurance kicks in.

Choosing the right deductible for your homeowners insurance is like picking your financial risk tolerance. A higher deductible lowers your premium, but means you'll pay more upfront if something happens. Conversely, a lower deductible comes with a higher premium but minimizes your out-of-pocket cost in an emergency.

Consider your budget and how much you'd comfortably pay in case of a claim to strike the right balance between affordability and coverage. Make sure to consider what is doable in times of an emergency or calamity, as you don't want to put additional stress on your family in a trying time.

Additional Living Expenses Coverage:

Picture this: a burst pipe floods your house, making it unlivable. Homeowners insurance can help, but where will you stay? That's where additional living expenses (ALE) coverage comes in. It reimburses you for temporary housing (hotels, apartments) and extra living costs (restaurant meals) while your home is repaired.

Choosing the right ALE amount is crucial. Too little, and you might be stuck couch-surfing during repairs. Too much, and you're paying extra for coverage you might not need. Consider the typical repair time for major issues in your area and your budget for temporary living to find the ALE sweet spot.

Not quite sure where to begin? Reach out to a LUNA Insurance agent in the LUNA insurance app to discuss options that might be best for you!

How to find the Perfect Homeowners Policy: Why Comparative Quotes Rule

Obtaining homeowners insurance is crucial for safeguarding your most valuable asset. However, securing the right coverage at a competitive price requires due diligence. Just as a thorough inspection precedes a home purchase, comparing quotes from multiple reputable insurers is essential. This process allows you to identify the optimal balance between comprehensive coverage and cost-effective premiums. By investing time in securing multiple quotes, you ensure your home is properly protected without overpaying for your peace of mind.

Now, you could spend hours scouring the internet, reentering your information on insurance carrier's websites, comparing home insurance policies one by one. Or you could be a total hero and use LUNA Insurance's app to get comparative insurance quotes from licensed agents from multiple top insurance carriers, all in one fell swoop. It's basically like having your own personal insurance matchmaker, finding you the best policy for your needs and budget.

Why LUNA Insurance Makes Home Insurance a Breeze

Get comparative homeowners insurance quotes with LUNA Insurance
The LUNA Insurance app makes shopping for homeowners insurance easy

Let's face it, traditional insurance can be a bureaucratic nightmare. But with LUNA insurance, everything is at your fingertips within the handy app. Here's what makes LUNA the G.O.A.T. of home insurance providers:

Effortless Comparative Quotes:

Get quotes from a network of licensed agents, ensuring you find the perfect fit. With the LUNA Insurance app, you have full transparency in quotes (unlike some insurance carriers that only claim to let you compare but conveniently their policy is always the most affordable one)

Document Hoarders No More:

Access all your important policy documents anytime, anywhere. No more digging through filing cabinets in a panic. Need quick access to your ID card? A clear breakdown of coverage limits or your deductible. It's right there in the LUNA Insurance app.

Service with a Smile (or Text):

Submit service requests and manage your policy with ease, all from the comfort of your couch (or while pretending to be productive at work). Your LUNA Insurance agent will promptly reply with the answer you need.

Renewal Time? No Sweat:

When it's time to renew your policy, LUNA automatically generates new comparative quotes, saving you time and money. It might be best to stay with the current insurance carrier, or it may be best to move your policy to another carrier.

With LUNA Insurance, you'll make the best decision at every policy renewal date to save the most money.

So, ditch the stress and let LUNA be your partner in homeownership. With LUNA, home insurance doesn't have to be a horror story. It can be a superhero origin story, where you emerge victorious, prepared for whatever life throws your way (except an asteroid strike– we're still crossing our fingers on that one). Download the LUNA Insurance app from the iOS App Store or the Google Play Store to get your homeowners insurance (or auto, motorcycle, RV, boat, etc...) quote started.

Remember, LUNA Insurance: A better way to insurance.

Download the LUNA Insurance app in the App Store for Homeowners Insurance quotes
Download the LUNA Insurance app in the Google Play Store for homeowners insurance quotes