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Stunning beaches, a rich culture, historical landmarks, and tax-friendly laws are only a few of the benefits Delaware offers. That's why many people and real estate investors choose this destination.
However, homeowners should consider many other things before moving to this state or buying a property there, including potential natural disasters.
Ideally, you should purchase homeowners insurance coverage if you own properties in Delaware or any other state.
It's a win-win solution. You'll meet your mortgage lender's requirements and have peace of mind because you'll be prepared for a potential disaster.
Finding the best Delaware homeowners insurance company can be difficult and time-consuming. Fortunately, we have created this guide.
After researching some of the top Delaware home insurance companies, we've selected the top five options to help you find a comprehensive, appropriate policy.
Understanding Delaware Homeowners Insurance
A homeowners insurance policy can protect your house or rental property. This type of insurance coverage acts as a security barrier against unforeseen natural events that could put your investment at risk.
Although homeowners insurance won't prevent damage to your property, it can give you the peace of mind you deserve. You'll have a financial safety net in case an unforeseen event results in hefty losses.
Average Home Insurance Costs in Delaware
On average, home insurance costs in Delaware are $679 a year for $250,000 in dwelling coverage. It's significantly lower than the national average of $1,428 per year.
The average homeowner's insurance cost in Delaware is also lower than in neighboring states, such as New Jersey ($775) and Maryland ($1,164).
However, multiple factors can influence these costs, including the following:
- Location
- Property value
- Age and condition of the property
- Dwelling coverage
- Claims history
- Security and safety features
- Likelihood of natural disasters
- The cost of rebuilding the property
- The homeowner's deductible and credit history
- Coverage limits
- Personal liability coverage
- Other structures coverage
- Personal property coverage
- Medical payment coverage
Additionally, many companies allow people to combine home and auto insurance services to get discounts and save on their premiums. If you're eligible, you might even consider bundling with other insurance products.
Homeowners Insurance vs. Landlord Insurance
If you own or manage rental properties, you've probably heard of these two terms: homeowners insurance and landlord insurance.
Are they different? Which one should you choose for your property?
Understanding the differences between homeowners insurance and landlord insurance is essential for choosing the best policy.
When the unexpected occurs and their properties are damaged, homeowners and landlords have different needs.
A landlord may lose rental income and need liability coverage for incidents involving tenants. Therefore, homeowners insurance policies may not be comprehensive enough for them.
Landlords insurance offers both options plus structure protection. That's why it's a better option for those planning to rent out a property.
However, there are a few exceptions. Homeowners insurance may be a better option for landlords in the following scenarios:
Vacant Property
Landlords with vacant rental properties can choose homeowners insurance to protect the structure and their personal belongings when no one is living there. However, you should inform your insurer about the vacancy to avoid issues.
Temporary Absence
Homeowners insurance coverage is ideal if you plan to rent out your home while you're away on a business or vacation trip.
Again, remember that you should inform your insurance company about this situation. Otherwise, you could have problems with your coverage. Also, a landlord insurance policy may be a better option if you plan to rent out your property for long periods.
Transition Period
If you're still looking for the ideal tenant and want to live in your property until you find the right candidate, you can have homeowners insurance in place. However, it's important to switch to another type of coverage once this transition period is over.
Home Sharing
Many homeowners decide to rent out just one bedroom to someone else, so both parties share the same property. In these cases, it's essential to determine if the insurance policy covers home-sharing situations.
However, you may need additional coverages if you share your property with a tenant or roommate, including the following:
- Home-sharing insurance, if available
- Liability coverage for guests and tenants
- Rental income loss coverage
How to Choose a Delaware Homeowners Insurance Company
If you think a homeowners insurance policy offers better protection for your primary residence or rental property, check out the following tips before choosing one.
Unique Policy Needs for Delaware Homeowners Insurance
As mentioned, Delaware has a unique climate and inherent hazards that could put your property and investment at risk. Therefore, you should consider different aspects before choosing a policy.
In this state, the most common natural disasters include flooding, heat waves, hurricanes, earthquakes, tornadoes, severe thunderstorms, and winter storms.
These are the coverages that most standard homeowners insurance policies include:
- Personal property coverage
- Dwelling coverage
- Personal liability coverage
- Medical payments coverage
- Wind or hail coverage
- Hurricane damage coverage
- Additional living expenses or loss of rent
In most cases, tornado damage falls into standard coverages.
Considering Delaware's weather conditions and common natural events, you may also need to purchase additional coverages for extended protection. These may include the following:
Flood Coverage
Since most Delaware home insurance policies don't cover damage and loss caused by flooding, you should consider purchasing this additional coverage, even if you don't live in a flood-risk area.
Earthquake Insurance
Also, most standard homeowners insurance policies don't cover earthquake damage, which is also crucial in Delaware. Therefore, this additional coverage is worth buying.
Personal Property Replacement Cost
This type of insurance covers replacement costs for lost or damaged items in case of theft or fire.
Other Factors to Consider When Assessing Delaware Home Insurance Companies
Delaware homeowners, property managers, and landlords can face different challenges due to common risks. Fortunately, a homeowners insurance policy can offer comprehensive protection.
However, there's still an important question to answer – How can you choose the right Delaware homeowner insurance company? These are other essential aspects to consider to make the right choice:
- Define your needs: The first step in choosing the right Delaware homeowners insurance company is to assess your needs and other property-related aspects, such as location or building costs. This is essential to determine if you need additional coverage.
- Research homeowners insurance companies: Take a look at the Delaware home insurance providers' websites and check the reviews previous customers have left to learn about their reputation. Ideally, you should choose a company with a track record of positive comments and excellent customer service.
- Compare different coverage options: Analyze all the options and choose a homeowners insurance company according to your needs and preferences. Check what each policy offers!
- Gather cost information: Request quotes and compare different options from multiple insurance companies. Don't choose the cheapest policy. Although you could save, it may not provide enough coverage. Consider your budget and other key aspects, such as reviews from other policyholders and insurance products.
- Evaluate the insurer's financial strength: Independent rating agencies, such as AM Best, offer insights into Delaware home insurance companies' financial strength and availability. This information can help you determine if insurers can meet claims obligations.
- Find out if there are discounts: If you want to save, you can also choose an insurance company offering discounts to reduce your premium. Many insurers lower rates for bundling policies while others offer discounts if properties have safety features, for example.
- Ask for recommendations: Not sure if the company you chose is a good fit? Before signing a contract, ask your friends or family for recommendations. If they have purchased homeowners insurance in the past, your loved ones could help you find the best company.
- Review the policy: Are you ready to purchase a homeowners insurance policy? Review the policy terms and conditions one more time. You should know the coverage limits, exclusions, and deductibles. If you still have doubts, don't hesitate to ask your insurer for clarification.
Best Home Insurance Companies in Delaware
These are the best Delaware homeowners insurance companies. Check each option, considering their offerings, and choose the one that best suits your needs.
1) Allstate
Allstate has served US homeowners for over 90 years, offering comprehensive insurance policies with multiple coverage options.
If you want to make your property more eco-friendly, this insurer has many insurance products worth checking. Also, Allstate can be a great option if you're looking for cheap home insurance, as it offers multiple discounts to help you save on your premiums.
Coverage and Features
These are the standard coverages that Allstate offers:
- Dwelling coverage
- Liability protection
- Personal property coverage
- Guest medical protection
This company offers renter, condo, and landlord insurance options. Also, you can choose the following additional coverages:
- Flood insurance
- Identity theft restoration
- Water backup
- Personal umbrella policy
- Business property
- Sports equipment
- Scheduled personal property
- Yards and garden
- Musical instruments
- Electronic data recovery
- Green improvement reimbursement
Discounts
Allstate also offers multiple discounts, which are great for saving on premiums. These are:
- Welcome and loyalty discount
- Homebuyer discount
- Multi-policy discount
- Easy Pay Plan
- Protective device discount
- Early signing discount
- Responsible payment discount
2) Amica
Amica has been a leading homeowners insurance since its founding in 1907. This company offers comprehensive policies and the opportunity to bundle home insurance with other policies.
With an A+ financial strength rating from AM Best, Amica is often considered one of the best Delaware homeowners insurance companies.
Coverage and Features
If you choose Amica, you'll have two options – Standard Choice Home Coverage and Platinum Choice Home Coverage. Let's see what each includes:
Standard Choice Home Coverage
These are the coverages of Amica's standard plan:
- Dwelling coverage
- Personal property coverage
- Protection of other structures
- Loss of use
- Liability coverage
Platinum Choice Home Coverage
If you choose the platinum option, you can get the following coverages:
- Personal property replacement coverage
- Dwelling replacement cost coverage
- Liability and medical payment coverage
- Valuable items extended coverage
- Business property coverage
- Water backup or sump overflow
- Special computer coverage
- Credit card coverage
- Loss assessment plan
Discounts
Amica also offers discounts to help policyholders save on their home insurance costs. These are:
- Alarm system
- e-discount
- Autopay
- Claim-free
- Multi-line
- Loyalty
- Automatic detection devices
- New/remodeled home credit
3) Nationwide
Serving US homeowners since 1926, Nationwide has also earned a spot on the list of best homeowners insurance companies in Delaware. Besides offering basic insurance products for landlords and property owners, this insurer has some unique additions to its policies, such as pet insurance.
Coverage and Features
If you purchase a standard homeowners insurance policy from Nationwide, you can get the following coverages:
- Dwelling coverage
- Protection of other structures
- Personal property coverage
- Personal liability coverage
- Guest medical payments coverage
- Ordinance or law insurance
- Loss of use
- Credit card insurance
In addition, this Delaware home insurance company offers the following add-ons:
- Flood insurance
- Brand new belongings
- Earthquake insurance
- Better roof replacement
- Identity theft
- Dwelling replacement cost
- Water backup
- Valuable plus
Discounts
Do you want to save on your premiums? Nationwide also offers several discounts. These are:
- Gated community
- Multi-policy
- Home renovation
- Claims-free
- Roof rating
- Prior insurance
- Smart home
- Protective devices
4) State Farm
State Farm offers homeowners insurance policies in 48 states, including Delaware, and the District of Columbia. Additionally, this company has earned an A++ financial strength rating from AM Best.
Coverage and Features
This insurer offers standard policies with multiple coverages, including the following:
- Dwelling replacement coverage
- Coverage for other structures
- Personal property coverage
- Personal liability coverage
- Additional living expenses (ALE)
- Medical payments
However, you can customize these policies with the following add-ons:
- Ordinance or law insurance
- Inflation guard
- Valuable possessions coverage
- Identity restoration coverage
- Cyber Event, Identity Restoration, and Fraud Loss Coverage (CEIDR)
Discounts
State Farms also offers several discounts for homeowners who want to save on their insurance policies. These are:
- Multi-policy
- Claims-free
- Home security
- Automatic sprinkler
- Utility rating plan
5) Liberty Mutual
This homeowners insurance company has been in business since 1912. It has gained popularity for its comprehensive policies and simple but convenient processes. Additionally, this insurer has partnered with the National Flood Insurance Program (NFIP) to offer flood insurance to Delaware property owners and managers.
Coverage and Features
Liberty Mutual offers multiple coverage options for its standard policies:
- Dwelling protection
- Coverage for other structures
- Personal property coverage
- Liability protection and guest medical coverage
- Additional living expenses (ALE)
Also, if you choose Liberty Mutual, you can customize your policy with the following add-ons:
- Flood insurance
- Earthquake coverage
- Personal property coverage
- Replacement cost for belongings
- Hurricane coverage
- Umbrella coverage
- Blanket jewelry coverage
- Identity fraud expense coverage
- Inflation protection
- Water backup and sump pump overflow coverage
Discounts
In addition, Liberty Mutual offers multiple discounts for homeowners and property managers who want to save on monthly insurance costs. These include:
- Newly purchased home
- Multi-policy discount
- Claims-free discounts
- Safe Homeowner Program
- Easy shopper discount
- New roof discount
- Insure to Value discount
- Preferred payment discount
- Paperless policy discount
- New/renovated home discount
Other Notable Delaware Home Insurance Companies
We've listed the best Delaware home insurance companies according to our criteria. However, other insurers offer excellent policies, including the following:
- Chubb
- Progressive
- USAA
- Farmers Insurance
Conclusion
When you choose a homeowners insurance policy, you're choosing a way to protect your property. However, you're also making a financial commitment. Therefore, you must do thorough research on the different insurance companies and their policies to pick the right one.
As mentioned, Delaware homeowners, landlords, and property managers face multiple challenges and risks. This happens in every state.
Therefore, you should assess your needs and review each homeowner's insurance policy in detail to choose the best option.
A comprehensive homeowners insurance policy can give you the peace of mind you need when the unexpected occurs. That's why it's essential to choose the right one.
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