Nevada may be known for the neon lights and casinos of Las Vegas, but it’s also one of the most seismically active states in the country. Home owners in the Silver State also have to be aware of a number of other environmental hazards, such as strong winds and brush fires. Due to the number of hazards it’s a good idea to have home insurance if you own property in Nevada.
How Much Does Nevada Home Insurance Cost?
The average cost of home insurance in Nevada was $696 in 2010, according to the Insurance Information Institute. Insurance companies consider multiple factors when they determine a customer’s premium, including the age and condition of the home, location, and proximity to a fire hydrant or fire station. The building materials used on your home also makes a difference. For instance, frame houses usually cost more to insure than brick houses because of their susceptibility to fire. The cost of your premium is also affected by the value of the property you want to insure; the more valuable your home is the more it will cost to cover.
Some insurance companies offer discounts for customers who have safety devices, including smoke detectors, burglar alarms, and sprinkler systems, installed in their home. You can also opt to lower your premium and increase your deductible, which is the amount of money you pay before the insurance company begins paying a loss. This will lower your monthly payment, but make sure you can afford the higher deductible in case you do face a loss. Finally, some insurers offer multi-policy discounts if you use them for other types of insurance.
What Does It Cover?
Standard home insurance policies cover damage to your house, structures attached to your house, other structures on your property, and items within your home such as clothing, furniture, electronics, and appliances. Some items, including money, guns, and jewelry, have limited coverage under most home insurance policies so additional insurance may be required. Liability coverage is also included in standard policies. It covers legal defense and financial loss if you’re found legally responsible for injuries or damages to someone else. Liability coverage also pays medical expenses in the event that someone is injured on your property or through your personal activities.
Do I Have to Get Home Insurance in Nevada?
Although home insurance isn’t required by Nevada state law, it’s a good idea to have it so you’re protected from the financial pain of paying for damages to your home or stolen property. You may also need it since most mortgage lenders require borrowers to have home insurance.
Optional Coverage to Consider
- Flood. Standard policies do not cover damages caused by flooding. Home owners should buy flood insurance through the National Flood Insurance Program (NFIP). If your home is located in a flood plain, your mortgage lender will generally require you to purchase flood insurance. For more information, consult Nevada’s Consumer Guide to Flood Insurance or contact the NFIP at 1-888-379-9531.
- Earthquake. Nevada ranks among the most seismically active states in the country, so earthquake insurance is highly recommended for Nevada residents. It is not included in standard policies, but it is available through most insurance companies at an additional cost. It is usually issued as an endorsement and attached to your home insurance policy. For more information, consult the Consumer’s Guide to Earthquake Insurance.
- Inflation Guard. This coverage helps you maintain adequate protection for your home. If the replacement cost of your home is increasing with inflation, your policy limits must increase periodically to maintain you insurance coverage at 80% or higher. This coverage provides periodic increases to your policy limit and it allows your insurance company to automatically change your policy limit during your policy period. This coverage is not offered by all insurance companies.
- Scheduled Personal Property Endorsement. Also known as a “personal article floater,” this endorsement covers possessions such as jewelry, furs, stamps, coins, antiques, and other items that’s value exceeds the normal limits in your policy. A personal article floater lists each item, provides a description of each article, and may require a certified appraisal.
Mobile Home Insurance in Nevada
Mobile home owners can purchase a specific policy that insures mobile homes, also known as manufactured homes. Most of these policies are based on the perils covered by HO-2 and HO-3 forms. In general, mobile home insurance covers the structure of your mobile home, your personal belongings, and additional living expenses if your home is damaged or destroyed. It also includes liability coverage. Check your policy to determine whether exclusions apply.