Your home is your sanctuary — and to protect your home, you need a robust insurance policy. Unfortunately, shopping for a homeowners insurance policy isn’t always a picnic. With a little knowledge and guidance, it doesn’t have be so overwhelming. We’ll give you the lowdown on different types of coverage, information specific to homeowners in The Silver State, and how homeowners insurance policies actually work.

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The Best Homeowners Insurance in Nevada

Freshome’s Recommended Homeowners Insurance Companies in Nevada: State FarmAmicaLiberty MutualFarmersAllstateNationwide

In order to find you the best homeowners insurance options, we received quotes from our top three recommended companies. Quotes can vary greatly depending your home and the type of coverage you choose. For research purposes, we used a single-story, three-bedroom, two-bath, 1,470-square-foot home in Boulder City, Nevada with an estimated reconstruction value of $250,000. We listed the home as having a security system and smoke detectors, and chose a $1,000 deductible.

We zeroed in specifically on an HO3 policy because we believe it offers the most for your money. There are many types of policy options, but HO3 policies offer the broadest range of coverage at reasonable rates. While HO1 and HO2 policies are less costly, they do not provide nearly as much coverage as HO3, which includes coverage to both your house and your personal property within.

An HO5 policy is very similar to an HO3, but it covers additional named perils, which also means that it can cost significantly more.

In addition to comparing providers based on costs, we also looked at financial strength as determined by financial ratings services A.M. Best and Moody’s and chose companies that ranked at a B+ or higher with A.M Best, in addition to having a high financial strength rating from Moody’s. Last, but not least, we also took into account J.D. Powers Overall Satisfaction ratings, which is based on customer ratings of all aspects of the company’s services. We selected companies that had a three-star rating or higher.

Our Quotes
State Farm$872 Per Year
Liberty Mutual$947 Per Year
Amica$1,165 Per Year

While Amica ranks the highest across the board in both overall satisfaction and financial strength, it is also the most expensive of the three quotes we received. With a lower cost and excellent financial ratings, as well as high customer satisfaction, State Farm offers the most quality coverage for the price based on our quotes.

These are just samples, however, and when you are ready to purchase a policy, you should compare several quotes based on your specific needs in order to find the best price.

What You Should Know Before Getting a Quote

With so many personal factors to consider when determining the best homeowners insurance option, it’s important you gather quotes yourself. You can contact a local insurance agent in your area or go online, where most major insurance companies have simple tools you can use to calculate a quick rate. Regardless, there will be several questions you’ll need to answer. Here’s a breakdown of what you need to know before you dive in.

Why You Need Homeowners Insurance

While homeowners insurance is not required by law in the state of Nevada, many mortgage lenders require that you purchase some form of coverage as a condition to your loan. Beyond this requirement, homeowners insurance is vital because it will protect one of your most valuable assets: your home. It is not just the structure of your house that is covered, however. Most policies should also cover the following:

  • Your house, including the plumbing, and heating and air conditioning systems
  • Any other structures on your property, including garages, sheds, and guest houses
  • Loss of your personal property due to damage or theft
  • Increased costs of living while your home is being repaired
  • Liability in the event you are sued for injuries or damages to another person
  • Medical expenses for any injuries incurred to others in your home

Types Of Coverage To Consider

While the areas covered by most policies are fairly standard, what can vary greatly is the perils that cause the damage. Your coverage only applies to the perils that are defined in your policy. There are several types of homeowners’ policies, labeled “HO” for short.

HO1 and HO2 offer the most basic forms of coverage from a specific list of perils. HO2 is slightly broader in the amount of perils that are named. An HO3 policy is a combination of coverages called open perils and named perils. The open perils coverage means the structure of your home is covered for any damage other than the perils that are specifically listed. In other words, nearly every peril is covered. The named perils provides coverage for the contents of your home under the same listed perils an HO2 policy covers.

Other common policies include the HO5 and HO8. An HO5 policy is an open peril policy on both your home and the contents, which means most perils are covered for both your house and personal property. This also means that the premiums can be much higher than an HO3 since it covers more. An HO8 policy is typically reserved for much older homes, or registered landmarks, that can cost significantly more to rebuild.

How Much To Insure For

Once you’ve determined the type of policy that’s best, you still need to calculate exactly how much insurance you’ll need. When gathering quotes, the most important figure you’ll need to estimate is the total reconstruction value of your home. This is not the same as the purchase price of your home, but rather how much it would cost to rebuild your home from the ground up. It’s critical that you make sure your home is insured for 100 percent of the replacement cost, explains Brad Cummins, Co-Owner at independent insurance agency, Insurance Market Agents.

Most insurance companies will use their own reconstruction cost calculator to come up with the replacement cost figure. As a consumer, you want to make sure you give your agent as much information as possible so he can gather an accurate reconstruction cost. Make sure you tell your agent details of the home construction. This information will increase the reconstruction cost and make sure you are covered accurately,” said Cummins.

What You Need To Get Started

In addition to calculating the reconstruction cost of your home, you will also need some basic information before you can receive a quote, including the size and style of your home, the year it was built, construction type, and whether or not you have a fire alarm or security system. You will also need to decide if you want to include additional endorsements, like flood coverage, as well as your deductible amount. It can also be helpful to have an estimate of the value of your personal belongings, explains Angi Orbann, Second Vice President of Personal Insurance at Travelers.

“We recommend creating a home inventory so you’re able to recall what you have in the event of a loss,” said Orbann .

Don’t Be Afraid To Ask For Help

Even with online tools that streamline the process, it can be confusing to wade through all your options and find the best policy. A local insurance agent can help you navigate the process, answer any questions that pertain to you personally, and ultimately help you find the best homeowners insurance in Nevada. “Always work with an independent agent,” suggested Cummins. “Most independent agents will be able to show multiple quotes at once. Working with an independent agent will save you time versus trying to get quotes online or gathering quotes from various captive agents on your own.” Independent agents are not tied to one particular insurance company so they can help you subjectively shop for the best rate and coverage.

Why Are Nevada’s Rates So Average?

According to a February 2016 study by the National Association of Insurance Commissioners, the average homeowners insurance premium in the US was $1,096 in 2013. Nevada’s average in the same year was $687. In 2016, our quotes now average around $994 per year, which indicates that Nevada’s rates have increased significantly over the last three years. There are a few factors that contribute to these higher rates, including the state’s economic growth and the threat of natural disaster.

Nevada’s economy is on an upward path, as unemployment continues to steadily decline and more businesses add new jobs, even surpassing pre-recession job figures. Personal income is also on the rise, with a 7 percent increase as of March 2016. Nevada’s real estate market, especially in Las Vegas, is also healthy and stable for new buyers and sellers. The recent economic growth is a major factor in the rate increase.

Nature is also a driving force when it comes to rising insurance premiums. The summer rainy season in Nevada brings the threat of flooding to homeowners. While flood insurance is not included in standard HO3 coverage, the possibility of home destruction from water damage could be enough to push premiums on standard coverage upward. On the whole however, many major natural disasters that plague other areas of the country, like hurricanes and tornados, are not a concern in Nevada, which helps to keep rates at an average level.

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FAQs

What are common coverage gaps?

An HO3 policy has a wide umbrella of coverage, but there are still some gaps that are not included. A few common coverage gaps include water damage caused by backups or slow leaking, flooding, and earthquake damage. You can cover these by adding an additional premium to your policy.

Are flood and earthquake coverage necessary?

Flood and earthquake insurance are not covered under most standard policies. If you live in a floodplain, you may want to consider additional coverage. Nevada ranks high among the most seismically active states; however, the level of seismic hazard as determined by the United States Geological Survey is highly concentrated in the southwest region of the state, so you should take into account your geographical location when considering additional earthquake coverage.

What deductible should I choose?

Most companies offer a few deductible limits to choose from. This is the dollar amount you will be responsible for when you have a claim. This is a personal choice based on what is financially feasible for your budget to cover out of pocket costs in the event of damage. Keep in mind that the lower the deductible, the higher the cost of your premium will be, and vice versa.

Are all my valuables covered?

Although everything in your home is covered against the perils described in your policy, the value of your personal possessions is capped at a specific dollar amount. “You may want to consider purchasing additional coverage for valuable items and collectibles, like paintings, jewelry, or baseball card collections,” said William Hebert, Regional Marketing Director at Mercury Insurance. Your agent will be able to help you determine how much coverage you need, so it’s important to provide values or appraisals for the items to make sure they are properly insured, explained Hebert.

Take Action

While it may seem like a stressful endeavour to find the best homeowners insurance policy, investing a little time upfront is worth it in order to end up with the security of a stable company that provides excellent care and well-priced coverage. With so many variables to consider, there is no one perfect solution for everyone, so you should shop around for several policy quotes before deciding on the one that’s right for you.

Freshome’s Recommended Homeowners Insurance Companies in Nevada: State FarmAmicaLiberty MutualFarmersAllstateNationwide

Compare Homeowners Insurance Rates

To quickly find and compare rates in your area, enter your ZIP code below.

Enter Your ZIP Code: