Homeowners Insurance FAQ

You need homeowners insurance because it helps protect your home and belongings so you don’t have to pay the full cost of a loss on your own. Depending on your policy, it can cover the cost to repair or rebuild your home and replace damaged or stolen belongings, and cover certain bodily injury and/or property damage or medical payments if someone is hurt on your property.

Homeowners insurance isn’t required by law, but most mortgage lenders require it as a condition of your loan. That’s because the lender has a financial interest in your home until it’s paid off. Once the mortgage is paid off, the requirement goes away, but many homeowners still choose to keep their coverage.

Homeowners insurance quotes are available online or through a local independent agent. Getting a quote online lets you explore coverage options based on your specific home and situation. An independent agent can walk you through your options, compare coverages and limits and help make sure your policy fits your needs and budget. Once you have a quote, you can adjust your coverages and deductibles to find the right balance of coverage and price.

Homeowners insurance typically does not cover damage from floods, earthquakes or wear and tear. It also won’t cover maintenance-related issues, such as plumbing that wears out over time. Homeowners in flood-prone areas may want to look into a separate flood insurance policy. Those in earthquake-prone areas can ask about adding earthquake coverage to their homeowners policy, which is available in many states. Additional coverage options are available for jewelry, fine art or other higher-value items that exceed a homeowners policy’s personal property limits.

Dwelling coverage should reflect the estimated cost of rebuilding your home, not its market value. Rebuilding costs depend on factors like your home’s size, age, construction type and local labor and material costs. Those costs can increase over time, so it’s worth reviewing your dwelling coverage limits at renewal or when you shop for a new policy. A Travelers representative or independent agent can help you select the amount of coverage for your home.

The amount of homeowners insurance you need depends on your home, your belongings, your liability needs and your budget. Start with enough dwelling coverage to rebuild your home and enough personal property coverage to replace your belongings. Liability limits should be high enough to protect your wages, savings and other assets if you’re found responsible for an injury to another person or property damage. You may also want optional coverage for items that may have limited coverage under a typical homeowners policy, such as fine art and jewelry. An independent agent or Travelers representative can help you think through each area and find coverage that fits.

Replacement cost coverage can help pay what it costs to repair or replace something, without subtracting for depreciation. Actual cash value coverage generally pays less because it factors in depreciation, which means a lesser payout for older items and an aging home. This distinction matters because rebuilding costs can rise over time as material and labor costs increase. For your home’s structure, replacement cost means repairing or rebuilding damaged parts of the home with similar new materials, without subtracting for depreciation. With Travelers, replacement cost options are available for both the home’s structure and personal property.

Personal liability coverage can help cover legal fees, medical bills and damages if a homeowner or resident relative is found responsible for injuring someone or damaging their property. For example, if a guest is injured at the home, liability coverage can help pay their medical costs and the homeowner’s legal expenses if the other party files a lawsuit. Most homeowners policies include at least $100,000 in personal liability coverage, with options to increase the limits.

Yes, you should notify your insurer about significant home renovations. Major upgrades can increase your home’s rebuilding cost. Adding a room, finishing a basement or updating your kitchen or bathrooms are common examples. These renovations could mean that you need more dwelling coverage than your policy currently provides. Letting your insurer know about a major renovation helps make sure your coverage still suits your home and situation. A Travelers representative or independent agent can review your policy and update your coverage if needed.

Your policy’s dwelling coverage may cover roof damage from events like wind, hail, fire or falling objects. Wear and tear, poor maintenance and an aging roof aren’t covered. Your roof’s age and condition can affect how much is paid after a covered loss. Replacement cost coverage can help pay to replace a damaged roof with a similar new one, while actual cash value coverage factors in depreciation and may pay less for an older roof. A Travelers representative or independent agent can review your policy to confirm the coverage you’ve selected.

Insurance may cover either a repair or a full replacement, depending on the extent of the damage and the policy. If only part of the roof is damaged, the policy may cover repairs to that section. A Claim professional will assess the damage and explain whether full replacement or repairs apply based on your policy and coverage type.

The two main types of roof coverage available from Travelers are replacement cost and roof schedule, and each pays differently after a covered loss. Replacement cost coverage can pay what it costs to fix or replace your roof today without subtracting for depreciation. A roof schedule sets a payment scale based on your roof’s age and material, such as asphalt shingles or metal, so the amount paid may decrease as the roof gets older. A deductible applies in either case. Knowing which type of roof coverage is in place can help you understand what to expect if you file a claim. A Travelers representative or independent agent can walk you through the options.

What you pay for homeowners insurance depends on your home, its location, your coverage choices and your deductible, so the cost can be different for every homeowner. The best way to know what you’ll pay is to get a quote based on your specific home and situation. An independent agent or Travelers representative can help you compare options and find coverage that fits your needs and budget.

Various factors affect homeowners insurance costs, including your home’s location, its estimated replacement cost, its age and condition, the deductible and the homeowner’s claims history. Location matters because areas with higher exposure to more severe weather, for example, affect the premium. The estimated cost to rebuild also plays a role because homes with higher rebuilding costs require more coverage and typically carry higher premiums. Discounts can help lower your premium as well.

A deductible is the amount you are responsible for before your insurance applies, up to the applicable limit. For example, with a $1,500 deductible on a $15,000 covered loss, you pay the first $1,500 and your policy covers the remaining $13,500. Choosing a higher deductible generally lowers your premium, but it also means more out-of-pocket expense if you have a covered loss. Choose a deductible you could comfortably cover if something happens.

Common homeowners insurance discounts that may help you save money include bundling your home and auto policies, installing protective devices like smoke detectors or a security system, maintaining a loss-free history and getting a quote early. The savings available to you depend on your specific home, location and policy. Visit Travelers’ discounts page for a full list of savings options or ask a Travelers representative or an independent agent to review your eligibility and help you find every savings opportunity available.

Property Wildfire Mitigation Discounts* 

• The Property Wildfire Mitigation Discount is available to Colorado customers whose insured property has received either an IBHS Wildfire Prepared Home™ or IBHS Wildfire Prepared Home Plus™ designation certificate.

IBHS Wildfire Prepared Home™ – 7% discount**
IBHS Wildfire Prepared Home Plus™ – 10% discount**

Community Wildfire Mitigation Discounts* 

• The Community Wildfire Mitigation Discount is available to Colorado customers whose insured location is within a Firewise USA^® Site in Good Standing that is recognized as such by the National Fire Protection Association. 

Firewise USA^® – 1% discount** 

• Customers can appeal their wildfire mitigation discount and/or wildfire risk score used to rate and/or underwrite their policy. You may contact us in one of the following ways to submit an appeal. Please include any evidence of mitigation actions. 

• • • Email us at: consumeraffairs@travelers.com
    • Write us at: Travelers
               One Tower Square, 8MS
               Hartford, CT 06183
    • Call us at 888.596.2250

*Wildfire mitigation discounts may not be available for all policies. Contact your independent agent or insurance representative for additional information.

**The individual wildfire mitigation discount(s) only applies to the portion of your premium calculated for wildfire risk and not your total premium.  

Bundling home and auto insurance is one way to save on both policies. Having them with the same company makes managing coverage and handling claims more straightforward, and getting quotes at the same time makes it easy to understand your potential savings side by side. Travelers offers home and auto bundling, as well as other bundling options. In some states, a Travelers home policy must be purchased with a Travelers auto policy. A local agent or Travelers representative can show you what the savings could look like for your situation.

Valuable items coverage can be added to a homeowners policy or purchased as a stand-alone policy to cover higher-value belongings like jewelry or fine art. Umbrella insurance and boat or yacht insurance are separate policies that can be purchased in addition to a homeowners policy. An independent agent or Travelers representative can identify which options make sense for your situation.

Jewelry and valuables may need additional coverage because homeowners policies can have special limits for certain items or types of loss, such as theft of jewelry. Valuable items coverage is designed for higher-value belongings and can usually be added to a homeowners policy or purchased as a stand-alone policy. Travelers offers valuable items coverage for jewelry, certain collectibles and other higher-value possessions. An independent agent or Travelers representative can help determine whether your current coverage limits meet your needs.

Umbrella insurance is a separate policy that adds an extra layer of liability coverage on top of your homeowners or auto policy. It can help cover the difference if a liability claim exceeds the limits of a homeowners policy, and it can also cover certain situations a home or auto policy may not. An independent agent or Travelers representative can help advise homeowners on whether umbrella insurance is a good fit for their coverage plan.

A homeowners insurance claim starts with reporting the loss to the insurer, either online, through the MyTravelers^® mobile app or by phone. Once reported, a Claim professional reviews the details, may inspect the damage and determines how to proceed based on the policy’s coverage, limits and deductibles. Travelers is known for its claim handling and customer care. A Travelers Claim professional guides them and keeps them updated throughout the process.

After damage to your home, first, make sure everyone is safe. Once everyone is safe, contact your insurer to file a claim. If possible, you should also document the damage by taking photos and take reasonable steps to prevent additional damage. If you’re insured by Travelers, a Claim professional will review the situation and guide you through the next steps.

Typically, a homeowners insurance policy can be reviewed and updated online, through a mobile app or by contacting your independent agent or your insurer. It’s a good idea to review your policy at renewal, after a major renovation or when your home or belongings change significantly. With Travelers, you can manage your policy through MyTravelers.com, the MyTravelers^® mobile app or by contacting an independent agent or Travelers representative.