, you’ll need policies that offer coverage for earthquakes, flooding, and other named perils. Sounds complicated? Don’t worry; it’s easy to compare quotes to get good deals.

If you’ve just bought a home—congratulations—you’ll likely need to get homeowners insurance. Even if it’s not required, it’s still a good idea to get home insurance to protect your home, your belongings, and your family.

Still uncertain about homeowners insurance in Montana? Car insurance super app

Jerry

is here to explain what

home insurance

is, what it covers, how to get it, and how to save money.

What is homeowners insurance?

Homeowners insurance offers protection for your home and your belongings. A homeowners insurance policy typically provides financial protection for the property damage, personal liability, and the loss of your home.

The average cost of homeowners insurance in the United States is $1,387 per year or $115 per month.

Basic components of homeowners insurance

Each homeowners insurance policy is personalized based on the home and your needs. That said, a typical homeowners insurance policy consists of the following:

Coverage A (Structure): Covers repairs or replacement for the house itself.

Coverage B (Additional structures): Covers repairs or replacement of other structures on the property, such as fences, pools, or detached garages.

Coverage C

(Personal property): Covers the loss or destruction of certain items of personal property (think furniture, electronics, jewelry, and more).

Coverage D (Additional expenses): Also called loss of use. Covers temporary living expenses (e.g. a hotel, rent, etc.) incurred as a result of losing the use of all or part of your home.

Coverage E

(Personal liability): Covers the cost of litigation when someone is injured on your property (or by your pet or family member).

When you purchase a homeowners policy, you can choose between actual cash value (ACV) and replacement cost. ACV is the value of your property at the time of loss, whereas replacement cost covers the cost to replace your property regardless of depreciation. Keep in mind that most companies require homeowners to purchase a policy that covers at least 80% of the replacement cost.

MORE:

Home insurance terms you need to know

Named perils

Homeowners insurance is not one-size-fits-all. Policies and coverages change based on the home and the customer’s needs. That said, most policies cover a list of certain named perils:

Fire

Lightning

Wind

Hail

Hurricanes

Damage caused by vehicles

Theft

Vandalism

Riots

Falling objects

Explosions

Read your policy carefully to make sure that you understand what’s covered and what isn’t.

Is homeowners insurance required in Montana?

The good news is that Montana does not legally require homeowners insurance. That said, it’s common practice for lenders to require homeowners to purchase home insurance for the duration of their mortgage.

How to get homeowners insurance

It doesn’t matter if you’re new to the home insurance world or you’ve held a policy for years,

Jerry

is here to help you find the best rates. Start by comparing quotes with multiple lenders (or using the Jerry app to compare rates) to find low prices.

You should also reach out to your current car insurance company, as they may offer discounts for

bundling home and auto policies

. You can see discounts in the range of 5% to 15% or higher off of your premiums, so it’s worth checking to see what your options are.

Recommended homeowners insurance coverage in Montana

Montana homeowners should consider policies that offer coverages for earthquakes, wind, lightning, and flood damage. A standard policy will likely offer coverage for all of the above except flooding, so it’s important to look for ways to protect yourself and your property against flooding.

Here are three strategies that can help you protect your home against possible flood damage:

Water backup coverage can pay for water removal and repairs following a burst or backed-up pipe.

Flood insurance

protects your home from flooding from a source outside of your home. You can get it through FEMA’s

National Flood Insurance Program (FLIP)

or a referral.

An HO-5 or open perils policy covers any peril unless it’s specifically listed as an exclusion in your policy.

MORE:

How to choose the right kind of home insurance for you

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Why is homeowners insurance in Montana so expensive?

Homeowners insurance in Montana is slightly more expensive than the national average. It costs about $65 more annually than the national average of $1,387 per year. While some factors affecting rates are unique to each customer (e.g., marital status and credit score), some factors are common for all Montana homeowners.

Earthquakes

Western Montana in particular is at high risk for earthquakes. The Intermountain Seismic Belt passes from Western Montana into Yellowstone National Park. The U.S. Geological Survey ranks the International Seismic Belt as a seismic hazard, thus increasing the risk to homeowners.

Insurance companies increase rates for everyone so that they can cover any potential payouts on claims.

Homeowners insurance discounts in Montana

While home insurance rates vary between locations, homes, and customer situations, there are fairly common homeowners insurance discounts most companies will offer, such as:

Discount	How to get it
Bundling	Bundling home and auto insurance could earn you a steep discount on both policies.
First-time homeowner	Most companies will offer you a discounted policy if it’s your first time purchasing a home.
Claims-free	If you maintain a certain period (typically a few years) without any claims on your policy, you may be eligible for a discounted rate.
Storm proofing	Installing various hurricane safety measures, such as an upgraded roof or storm shutters, could earn you a discount on your homeowners policy.
Security system	If you’ve got a security system to prevent theft, your insurance company might discount your homeowners insurance rate.
Upgraded fire alarm	Set up your fire alarm to contact the fire department directly—your insurance company may give you a discount for a shorter fire response time.

How to save money on home and auto insurance

Hopefully, by now we have answered all of your questions about

homeowners insurance

in Montana. The next step: signup!

Jerry

makes this easy by comparing rates from the nation’s top providers and sending you the best deals for free.

After providing you with a comprehensive cross-analysis of the best policies across providers, Jerry will handle the phone calls, paperwork, and renewals for your top pick so that you don’t have to. They even help cancel your old policy! So why do all that extra work when Jerry can do it better?

“Let me start by saying I’ve used all the websites that compare insurance to get you the best deal. I thought I had a great deal at $300 a month. I was making breakfast, and by the end, I was saving $125 a month in insurance! This is a huge relief. It really saved the day and I am so grateful!” –Jasper H.

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FAQs

Is earthquake insurance required in Montana?

It’s not required, but it’s a good idea to get it, especially if you live in Western Montana. Not all regions will offer earthquake insurance (just like how flood insurance isn’t usually offered in a desert).

What is the average cost of homeowners insurance in Montana?

The average homeowner in Montana pays between $1,300 and $2,600 a year, though this does depend on personal demographics and other factors.

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