Your home is not just a place; it’s your sanctuary, your haven, and your most significant investment. Protecting it is paramount, and having the right home insurance coverage is the key. In this comprehensive guide, we will explore Geico’s home insurance coverage options in detail, helping you make informed decisions to safeguard your home and belongings.
- Understanding Home Insurance and Why You Need It
- Getting to Know Geico Home Insurance
- Standard Home Insurance Coverage
- Additional Coverages and Endorsements
- Optional Coverages for Enhanced Protection
- Home Insurance Discounts and Savings
- Factors Affecting Home Insurance Rates
- Making a Claim with Geico Home Insurance
- Geico Home Insurance Customer Reviews and Ratings
Understanding Home Insurance and Why You Need It
What Is Home Insurance?
Home insurance is a financial contract that protects your home and personal belongings from a range of risks, including damage, theft, and liability claims. Understanding its components is crucial for homeowners. Homeowners insurance is a form of property insurance that covers losses and damages to an individual’s residence, along with furnishings and other assets in the home. Homeowners insurance also provides liability coverage against accidents in the home or on the property.
The Importance of Home Insurance
Home insurance is not just a luxury but a necessity. A homeowners insurance policy usually covers four kinds of incidents on the insured property: interior damage, exterior damage, loss or damage of personal assets/belongings, and injury that occurs while on the property. When a claim is made on any of these incidents, the homeowner will be required to pay a deductible, which in effect is the out-of-pocket costs for the insured.
For example, say a claim is made to an insurer for interior water damage that has occurred in a home. The cost to bring the property back to livable conditions is estimated by a claims adjuster to be $10,000. If the claim is approved, the homeowner is informed of the amount of their deductible, say $4,000, according to the policy agreement entered into. The insurance company will issue a payment of the excess cost, in this case, $6,000. The higher the deductible on an insurance contract, the lower the monthly or annual premium on a homeowners insurance policy.
Every homeowner’s insurance policy has a liability limit, which determines the amount of coverage the insured has should an unfortunate incident occur. The standard limits are usually set at $100,000, but the policyholder can opt for a higher limit. In the event that a claim is made, the liability limit stipulates the percentage of the coverage amount that would go toward replacing or repairing damage to the property structures, personal belongings, and costs to live somewhere else while the property is worked on.
Legal Requirements and Mortgage Lenders
In some cases, home insurance is not just a choice but a requirement. Mortgage lenders often mandate home insurance to protect their investments. We’ll delve into these legal requirements and the implications for homeowners.
Virtually all mortgage companies require borrowers to have insurance coverage for the full or fair value of a property (usually the purchase price) and won’t make a loan or finance a residential real estate transaction without proof of it.
Read Also: Understanding Refinance
You don’t even have to own your home to need insurance; many landlords require their tenants to maintain renter’s insurance coverage. Whether it’s required or not, it’s smart to have this kind of protection.
Getting to Know Geico Home Insurance
While Geico is best known for its auto insurance, it does provide the option for customers to purchase homeowners insurance through its website and agents. Geico functions as a broker and matches customers with third-party home insurers through the Geico Insurance Agency. This means that a homeowners insurance policy purchased from Geico will actually be from another company.
If you already have car insurance from Geico, purchasing a homeowners policy may qualify you for an auto insurance discount. However, Geico doesn’t allow you to choose the insurer you’ll be matched with. And, once purchased, you may need to work with the third party directly to manage your policy and file a claim — so there’s little convenience from bundling.
You can customize your homeowners policy with numerous add-ons, but below are the types of coverage that generally come standard:
| Type of coverage | What it does |
|---|---|
| Dwelling | Pays to repair or rebuild the structure of your home. |
| Other structures | Covers damage to unattached structures such as a shed or fence. |
| Personal property | Pays to repair or replace personal belongings such as furniture or clothing. |
| Loss of use | Pays for hotel stays, restaurant meals or other expenses if you have to live elsewhere while your home undergoes covered repairs. |
| Personal liability | Covers legal expenses and damages if you’re responsible for injuries to other people or their property. |
| Medical payments | Covers injuries to guests in your home, regardless of fault. |
Discounts from third-party homeowners insurers will vary, but a few discounts are available through Geico Insurance Agency. If you’re already a Geico auto insurance customer, you could get a discount on your auto policy for getting a homeowners policy through the company.
Other discounts may be available for homes with:
- Home security systems.
- Smoke detectors and fire extinguishers.
Consumer experience
Website: You can use Geico’s website to get a homeowners insurance quote from one of the company’s affiliates or to learn about various types of insurance. The website offers a list of contact numbers for the companies in its homeowners insurance network, which includes well-known insurers like The Hartford, Liberty Mutual, and Travelers.
App: The Geico app lets you view your homeowners policy information, but you’ll need a Geico auto or motorcycle policy to use it. You may have access to a mobile app with more robust features depending on the home insurer you’re matched with.
Claims: To file a claim, you’ll need to contact the partner company that underwrites your policy. Some offer online claims reporting, while others may require you to file over the phone. Geico has a list of phone numbers and links for all its partners on its website.
Customer service: Geico has a chatbot that can help with quick questions. You can also log in to send direct messages to the company or call 800-241-8098 with questions about your homeowners insurance policy.
Standard Home Insurance Coverage
Homeowners insurance protects your home and belongings in the event of a fire, hail, tornado, or burst pipe. If one of these circumstances causes damage to your house, your policy may cover the cost of repairs. Homeowners insurance can also cover you if your goods are stolen or vandalized.
A homeowners policy, however, covers more than simply your house and belongings. It can also pay to defend you in a lawsuit or cover medical expenses for someone injured on your property. If you are unable to reside at home during a covered disaster, your homeowner’s policy may pay the cost of a hotel or rental flat.
Dwelling coverage
Dwelling coverage covers the structure of your home, including the walls, floors, windows and roof. Built-in appliances, such as furnaces, are also typically included in your dwelling coverage. An attached garage, porch or deck would fall under your dwelling coverage, too.
Which events are covered: Most homeowner’s policies cover your dwelling for any cause of damage that isn’t specifically excluded. Some of the most common causes of homeowners insurance claims include wind, hail, freezing, fire, and lightning, according to the Insurance Information Institute.
How it works: A severe thunderstorm uproots a tree that falls onto your home, crushing part of the roof and attic. You’d pay your share of the repair cost — known as the homeowners insurance deductible — and then the insurer would pay the rest, up to your dwelling coverage limit.
Other structures coverage
Just like it sounds, other structures coverage provides insurance for structures on your property that aren’t attached to your house. That could include a shed, fence or detached garage.
Which events are covered: As with dwelling coverage, most homeowners insurance policies cover other structures for any event that isn’t specifically excluded. That means you’d likely have coverage for fire, wind, hail, and snow, among other issues.
How it works: Part of your fence collapses under the weight of heavy snow. The insurance company would pay to repair it, minus your deductible.
Personal property coverage
Personal property refers to your personal belongings — like clothes, furniture, electronic devices, and appliances that aren’t built in. Most homeowner’s policies cover these items anywhere, not just inside your house. So if someone steals your bike from outside a store, it’ll likely be covered (minus your deductible).
Which events are covered: In most homeowners’ policies, personal property coverage works differently than dwelling and other structures coverage. Instead of covering your belongings for anything that isn’t specifically excluded, homeowners’ policies often cover only disasters that are listed.
These events, typically called “perils” in your policy, tend to include:
- Fire or lightning.
- Smoke.
- Windstorms and hail.
- Explosions.
- Theft.
- Vandalism.
- Weight of ice, snow and sleet.
- Sudden damage from a power surge.
- Volcanic eruptions.
- Falling objects.
- Water overflow or discharge from household systems like plumbing, air conditioning and appliances.
- Freezing of those same household systems.
- Sudden tearing, cracking or bulging of a hot water system, steam system, air conditioning or fire protective system.
- Riots.
- Damage from aircraft or vehicles.
How it works: A pipe bursts on a frigid winter night, sending water cascading into your kitchen and dining room. Although dwelling coverage would pay for damage to built-in items such as cabinets, personal property coverage would take care of ruined furniture, minus your deductible.
Loss of use coverage
Sometimes called “additional living expenses,” the loss of use a section of your homeowner’s policy can come in handy if your home is too damaged to live in. Loss of use coverage may pay for hotel stays, restaurant meals or other expenses associated with living somewhere else if your home is uninhabitable after a disaster your policy covers.
Which events are covered: As long as your home is undergoing repairs for a covered claim, you’ll likely be eligible for loss of use coverage. But if your home’s damage is from a disaster that isn’t covered — such as a flood — your insurer won’t pay your additional living expenses, either.
How it works: After a kitchen fire spreads to your living room, your home is out of commission for a few months while contractors make repairs. Your insurance company would pay for you and your family to rent a similarly sized house nearby.
Liability coverage
Personal liability coverage offers financial help if you’re responsible for injuring someone or damaging their property. Coverage generally extends to anyone in your household, including pets — so if your dog bites someone at the park, you may have coverage.
Which events are covered: Liability insurance covers bodily injury and property damage to others, with some exceptions. For instance, your policy won’t cover criminal acts or harm you cause on purpose. Nor will it pay for injuries or damage from a car accident (your liability car insurance would cover those).
How it works: A delivery person slips on your icy sidewalk before you can salt it. He breaks his wrist in the fall and sues you for medical bills and lost wages. Your liability coverage could pay your legal fees, plus any damages you’re responsible for in the lawsuit, up to your policy limit.
Medical payments coverage
Like liability coverage, medical payments coverage pays if you cause physical injury to someone outside your household. However, you don’t need to be found at fault for medical payment coverage to pay out.
Which events are covered: You could tap your medical payments coverage if someone suffers a minor injury on your property or you cause harm to someone outside your home. Similar restrictions apply to liability and medical payments, with no coverage for intentional acts or car accidents, among other exclusions.
How it works: Your dog bites the hand of a visiting friend. There’s no serious harm, but your medical payments insurance covers the cost of their trip to urgent care for stitches.
Additional Coverages and Endorsements
A homeowners insurance endorsement is additional coverage you can add to your home policy to cover perils and causes of loss that aren’t normally covered. Endorsements can also increase your coverage limits for expensive items like jewelry, electronics, and fine art — which standard home insurance only offers limited coverage for.
Home insurance endorsements are especially vital as inflation and the increase in natural disasters continue to drive up rebuild costs. However, many homeowners didn’t take advantage of these coverage add-ons last year.
According to our Policygenius Home Insurance & Inflation Shopping Survey of 2023, nearly half of homeowners (47%) may be without crucial coverages to protect against rising rebuild costs. And even fewer have valuable endorsements like inflation guard coverage, ordinance or law coverage, and guaranteed or extended replacement cost coverage to ensure their home is fully protected.
Personal property replacement cost coverage
Personal property replacement cost coverage pay to replace your belongings with new items of similar type and quality — without deducting for depreciation.
- How it works
By upgrading your personal property coverage at its replacement cost, your insurance company will pay to replace your furniture, clothing, electronics, and other belongings with new items — regardless of how old or worn they are.
- How much it costs
The cost to update your personal property coverage to its replacement cost varies by company and policyholder.
Flood insurance endorsement
A flood insurance endorsement covers your home and personal belongings against water damage caused by flooding, including high tides, hurricane storm surge, heavy rain, and other sources of natural flooding. A typical homeowners insurance policy does not cover flood damage, so if you live in a flood zone or close to a body of water, consider filling in this important coverage gap with a flood insurance endorsement.
- How it works
Kin, Tower Hill, Narragansett Bay, and a few other home insurance companies offer a rare private flood insurance endorsement you can add on to your standard home insurance policy for an additional premium. This covers the cost of repairs and other expenses if your home is damaged in a flood.
- What it costs
The average cost of private flood insurance is around $1,074 per year, according to our 2023 analysis of flood insurance pricing data from the National Association of Insurance Commissioners. However, you might be able to receive a discount if your purchase flood insurance as an endorsement to your standard home insurance policy.
Earthquake coverage
Earthquake damage is an excluded peril in a homeowners insurance policy.
- How it works
Some insurance companies offer earthquake endorsements. The endorsement essentially adds earthquake coverage from your policy — so it covers the costs of rebuilding your home, replacing your belongings, and paying for additional living expenses in the event an earthquake destroys your residence. You can also purchase standalone earthquake insurance.
- What it costs
The cost of earthquake insurance will depend on your home’s location and the extent of coverage you need. Earthquake endorsements are significantly cheaper than a separate earthquake insurance policy.
Home business coverage
The maximum payout for home business property is typically $2,500 in a standard homeowners insurance policy. If you have laptops, cameras, and other tech devices you use for work, that $2,500 may not be enough coverage to fully replace everything you lost if your home office was damaged or broken into.
- How it works
Home business coverage can extend financial protection to your business property and raise your coverage limits. This endorsement does not include liability coverage.
- How much it costs
Cost will depend on the size of your business and your insurance company. Generally, a home business endorsement costs an additional $25 annually to increase your coverage limits to $5,000. If you have a larger home business, you may need an in-home business policy, which is a separate policy that you can buy — they typically offer up to $10,000 in coverage.
Identity theft coverage
Some insurers automatically include identity theft coverage in standard policies, but if they don’t you may be able to add identity theft coverage as an endorsement. It covers the costs associated with identity theft recovery.
- How it works
Identity theft coverage helps pay for costs associated with recovering your identity, but it doesn’t include monetary reimbursement, like if someone drains your bank account. Policies vary by insurer and state, but you’re usually covered for fraud services, ID replacement, identity restoration, loss of income, and attorney and administrative fees. You can choose to enhance your identity protection with cyber attack coverage, cyber extortion coverage, or fraud coverage.
- How much it costs
It’ll depend on the insurance company, but you may be able to add $15,000 in identity theft coverage to your policy for an additional $25 to $60 a year.
Optional Coverages for Enhanced Protection
Water backup coverage
If water backs up through a sewer or overflows through a sump pump and damages your home’s foundation or your personal belongings, home insurance won’t reimburse you for repairs or new items. Water backup coverage supplements that gap in coverage.
- How it works
Water backup coverage protects your home and personal property from water damage caused by backed up drains, sewage systems, and sump pumps, even if the discharge occurred due to mechanical issues.
How much it costs
You can usually add between $5,000 to $25,000 in water backup protection to your policy for about an additional $30 to $70 a year. To decide on a coverage amount that works for you, consider how much it would cost to replace your flooring, furniture, and personal belongings if they were damaged by a sewer or drain backup.
Equipment breakdown coverage
Home insurance covers your appliances if they’re damaged by a covered peril, like a fire. But it won’t pay to repair or replace them if they break due to mechanical or electrical failure — but equipment breakdown coverage does.
- How it works
With equipment breakdown coverage, a variety of appliances and devices in your home are covered in the event that they break down due to mechanical or electrical failure, including:
- Boilers and furnaces
- Computers and related equipment
- Heating and air conditioning systems
- Home entertainment systems
- Home security systems
- Washers and dryers
- Refrigerators and freezers
- Ovens and microwaves
- Water heaters
Equipment breakdown coverage may also cover food spoilage if your freezer or refrigerator stops working and you’re out all of that food.
- How much it costs
Equipment breakdown coverage can cost about $25 to $50 annually for around $50,000 in coverage per occurrence. In most cases, you need to pay a deductible of $250 to $500 before your coverage kicks in.
Ordinance or law coverage
Ordinance or law coverage is a home insurance add-on that covers the extra cost of getting your home up to code after a covered loss, including home construction, demolition, remodeling, and renovations.
- How it works
Most city, state, or county governments have building codes around how homes must be built to ensure everybody’s safety. Because building codes change frequently as construction techniques improve, it’s likely your home isn’t up to current building codes.
That’s where ordinance or law coverage comes in. If your home is damaged in a covered incident, this endorsement will cover the extra costs to bring your home up to code while making other repairs.
- What it costs
Most home insurance companies offer a limited amount of ordinance or law coverage that comes standard with your home insurance policy. However, you can often purchase higher coverage limits for an additional fee. How much it costs will vary depending on where you live, your insurer, and how much additional coverage you purchase.
Home Insurance Discounts and Savings
Applying discounts could be one of the finest strategies to receive a lower homeowners insurance cost without sacrificing important coverage. Though discounts vary greatly by insurance company, there are several common discounts that almost all insurance companies provide. If you do not currently have these homeowners insurance reductions, you should inquire about them.
New home discount
When a person moves into a brand spanking new house, insurers assume that everything will be in decent shape. They worry less about the roof blowing off or water leaking into the family room. They also assume that the house has up-to-date safety features. Anyone who has just purchased a new home can insure it for up to 35% less than an existing home.
Senior discount
Insurers make some assumptions when it comes to homeowners over the age of 55. For one thing, they assume an older homeowner has more time for maintenance and repairs. Whether the assumption is correct or not, many insurers offer special homeowners insurance discounts to people over the age of 55.
Bundling discount
When a person purchases their home, auto, and (possibly) life insurance from the same insurance company, it’s called bundling. Companies love bundling and offer discounts to those customers who take advantage of one-stop policy shopping.
Claims-free discount
What an insurance company likes more than anything else is a customer who pays their premiums without making claims. If a homeowner has gone a number of years without making a claim, it’s worth checking to see if they qualify for home insurance no-claims discount.
Loyalty discount
Because insurance is a business, insurers appreciate customers who stick around. If a homeowner stays with the same company for a certain amount of time, they are typically eligible for a loyalty discount. A home insurance provider may require those long-term customers to be claims-free for a specific number of years.
Impact-resistant roof discount
Before a homeowner has a new roof installed, it pays to learn if an insurance provider offers any homeowners insurance discounts for impact-resistant roofs. While impact-resistant shingles can cost twice as much as standard shingles, they can pay off big for homeowners in areas prone to wind and hailstorms. Simply put, they stand up better to harsh weather and ultimately require less repair.
Security system discount
Because security systems can reduce the chance of break-ins and monitored systems allow police to respond quickly, insurers offer homeowners insurance discounts to people who use monitored security to protect their property.
Factors Affecting Home Insurance Rates
There are numerous factors that go into each insurance provider’s individual technique of calculating risk, ranging from the location of your house to your personal claims history. And, whether you’re a first-time homebuyer or a seasoned homeowner, understanding the mechanics of it all will help you make smart Home Insurance decisions and manage the cost of your coverage. Continue reading to learn more about the elements that influence your home insurance.
1. Location
The physical location of your home is one of the biggest factors in determining how much your Home Insurance premium will cost. Insurance companies track the type, frequency, and cost of past insurance claims in your specific postal code—and they use the claims history of your area to predict the likeliness of any future claims.
But the more risk an insurer takes on, the more they’ll charge you for insurance. That means if you live in a high-crime neighborhood, or in an area that’s prone to natural disasters like floods or earthquakes, then your Home Insurance rate will rise accordingly. So if you’re looking to purchase a new home, you might want to keep location top of mind.
2. Age & Condition
As your home ages, it’ll deteriorate and become more vulnerable to structural issues, defective pipes, damaged roofing, electrical failures, and a whole host of other problems. Any of these hazards could increase the chances of your home sustaining damage, whether it’s from water, fire, or extreme weather events. Because of this potential added risk, Home Insurance premiums generally tend to rise as homes age.
Don’t forget: any damage that occurs as a result of poor maintenance won’t be covered by your Home Insurance policy, so you’ll need to be diligent in keeping your house in tip-top shape. Repair all issues as they come up, and make sure that the plumbing and electrical systems have been updated to today’s standards, particularly if you live in an older home.
3. Credit Score
Your credit score is typically used to show lenders that you can be trusted to pay off your debts, and similarly, some insurance companies see it as a way of assessing your overall level of risk. Those with better credit scores could be eligible for better rates, and even discounts on Home Insurance.
Newfoundland and Labrador is the only province that prohibits using credit history as a factor in determining Home Insurance premiums. Across the rest of Canada, insurers are allowed to look at your credit score to help calculate your Home Insurance premium—but that doesn’t mean all of them will. Before making a final decision, it’s important to shop around and compare your options. And if you need any guidance, contact your broker!
Making a Claim with Geico Home Insurance
So you had an accident. It happens. Just contact GEICO to get the insurance claims process started. If your car is safe to drive, we’ll schedule a time for you to bring it in—usually within 24 hours. If it’s not safe to drive, just let us know and we will send an auto damage adjuster to the vehicle’s location.
You can choose any repair shop for your repair work, but if you would like our help when choosing a shop consider using our GEICO Auto Repair Xpress® program for fast, hassle-free repairs. You’ll have peace of mind knowing that GEICO provides a written lifetime guarantee for as long as you own the vehicle. Find an Auto Repair Xpress facility and call us to schedule an appointment.
At the inspection, which usually takes about 30 minutes, the Shop Representative will evaluate the damage to your car and write up an estimate. Plus, if you have rental reimbursement coverage, we’ll help to set you up with a rental car while your vehicle is being repaired.
Of course, if you have any questions throughout the process, simply call a GEICO claims representative at (800) 841-3000.
Covering the Costs
It’s the $64,000 question. “When do I get my money?” GEICO will usually send payment to you as soon as possible after the accident investigation is complete. GEICO provides payment digitally or by mail. It will cover the repairs to your car, minus any deductible amount.
Geico Home Insurance Customer Reviews and Ratings
We read more than 100 reviews from Geico home insurance customers throughout a research process to get a sense of customer satisfaction and common complaints. In research, we found that most negative Geico insurance reviews referenced auto policies rather than the company’s home insurance coverage.
Overall, Geico customers for home insurance praise the personalized help that they receive through customer service representatives and insurance agents. Several positive reviews also mention the professionalism and concern they’re shown when filing a claim. However, typical complaints involve rate increases that are difficult to understand and long wait times for checks and help with claims.
Conclusion
Geico home insurance has some perks for customers who also insure their car through the provider and offers an intuitive website and mobile app. However, the company’s system of pairing shoppers with third-party providers and lack of discounts can be drawbacks. Before choosing a policy, you should get at least three different quotes to compare coverage and pricing.
If you already have car insurance from Geico, purchasing a homeowners policy may qualify you for an auto insurance discount. However, Geico doesn’t allow you to choose the insurer you’ll be matched with. And, once purchased, you may need to work with the third party directly to manage your policy and file a claim — so there’s little convenience from bundling.
