Homeowners Insurance in Delaware

What factors influence my home insurance rate?

Many different factors are used to calculate your insurance coverage cost, also called your premium. Insurance companies look at you, your home, and the policy you want to build.

As far as your home is concerned, the following factors can influence your price for coverage:

• Where your home is located (ZIP code)
• The size of your home (square footage and number of rooms)
• When your home was built
• The materials used in your home
• Your home’s current condition
• Any recent updates or renovations made
• Whether your home’s features are standard or not (such as high ceilings, tall doors, high-end fixtures, and the like)
• The cost of labor and materials in your area
• Any additional structures and features on your property (like a pool, outdoor kitchen, deck, guest house, etc.)

Because the product you build affects the price you’ll pay for said product, carriers will then consider your policy options. These include:

• What type of policy you buy
• How much coverage you include
• Your chosen deductible
• Any optional riders (also known as endorsements) you add to the policy

Lastly, you, as the policyholder (and any other covered individuals living in the home), will be considered. Homeowners with greater risk factors will typically pay more for their coverage. Some of the factors considered include:

• Any added risk factors in your home, such as select dog breeds, a pool (especially without a fence), a trampoline, a home-based business, etc.
• Whether you’ve made any claims against your policy in recent years
• Your personal credit history and insurance score

Each carrier will evaluate these factors using a proprietary calculation to determine your risk level and, in turn, your policy premiums.

Common insurance discounts in Delaware

Most individuals buying homeowners insurance in Delaware want to pay as little as possible for their coverage. One good way to reduce your premiums is to qualify for eligible discounts on your policy, sometimes saving you hundreds each year.

Available discounts can vary from one insurance company to the next. Here are some of the most common homeowners insurance discounts in Delaware:

• Multi-policy/bundle discounts — Available when you purchase more than one insurance policy from the same carrier
• Welcome/new customer discounts — Added to your policy when you take out a brand new policy or switch from another carrier
• Loyalty discounts — Offered when you stay with your carrier for multiple years
• Safety discounts — Available to homeowners with certain safety features in place, such as alarm systems, fire sprinklers, fire-resistant roofs, smart sensors, and more
• New home discounts — Extended to homeowners who build a new home or buy one that’s only a few years old
• Claims-free discounts — Offered when you haven’t made a claim against your policy in recent years
• Payment discounts — Available when you pay your policy’s full premiums up front (instead of in monthly installments) or sign up for autopay
• Affiliation discounts — Often include military service members and first responders but may also extend to medical personnel, AAA members, certain university alumni, and more

You’ll want to check with your carrier to see which discounts are available and which you qualify for when building your policy.

Tips for lowering home insurance rates

Aside from policy discounts, there are a few other ways you may be able to lower your Delaware home insurance rates. 

• Choose a higher deductible. Your deductible is the portion of a covered loss you’ll need to pay upfront before your insurance policy kicks in. The higher your deductible, the more risk you’re willing to take on… and usually, the lower your premiums will be. 
• Change your coverage. The more insurance coverage you buy, the more you’ll generally pay. If you want to reduce your premiums, you can lower your policy limits and even remove certain coverages — just make sure you don’t leave yourself underinsured in the process.
• Update or repair your home. If your home is in disrepair or has old or outdated features (like a roof or electrical wiring), you may pay more for your coverage. To lower your premiums, you can make certain repairs or updates and reduce the overall risk of your home. 
• Make your home safer. Adding a security system, smart home monitoring, or sprinkler systems can make your house safer and usually result in lower premiums.
• Boost your credit. An insurance company won’t deny you coverage due to a low(er) credit score, but that three-digit number can impact your premiums. A risky borrower is usually viewed as a risky homeowner, so a poor history of payments, too much debt, or even defaults on your credit can mean paying more for your insurance. 
• Shop around. Before you buy—and at regular intervals as you hold your policy—be sure to spend some time shopping around for home insurance quotes. Delaware residents may find that one carrier offers lower rates than another for the same coverage or that they can save even more by switching insurance companies at renewal time. 

What does Delaware home insurance cover?

A typical homeowners insurance policy offers six different types of protection. 

• Dwelling coverage, also known as Coverage A, protects the actual building that is your home, including the exterior façade, roof, walls, floors, foundation, ceilings, cabinets, large appliances, and any other permanent fixtures. Coverage A also extends to attached structures like a patio or garage.
• Other structures coverage (Coverage B) protects structures on your property that aren’t actually attached to your home. This could include things like your fence, shed, detached garage, gazebo, deck, pool house, and more.
• Coverage C offers personal property coverage for your belongings. If your home is damaged or destroyed in a covered loss, or your belongings are vandalized or stolen, this coverage can help pay to repair or replace them. This coverage extends to your clothes, furniture, home decor, personal electronics, jewelry, etc.
• Loss of use coverage, also known as Coverage D, helps pay for additional expenses you might incur if your home is uninhabitable due to a covered loss. This coverage can be valuable for expenses like hotel stays, laundry services, and even restaurant meals when you cannot stay in your own house. 
• Coverage E is for personal liability coverage. This aspect of your Delaware homeowners insurance policy protects you against property damage and even injuries incurred by someone else, for which you (or someone in your family) are held liable. Whether your dog bites your neighbor or a friend slips and falls on your stairs, Coverage E can help cover damages, lost wages, and legal expenses.
• Medical payments coverage (Coverage F) also protects you when someone else (not in your household) is injured on your property. This coverage can pay for medical bills and co-pays, so you aren’t forced to cover them out of pocket.
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While these are the typical homeowners insurance coverages, they may vary depending on the type of homeowners insurance policy you purchase. Be sure to read your policy documents carefully and even contact the carrier if you have questions about your coverage.

Additional Delaware insurance coverage options

In addition to the standard homeowners insurance protections, there are endorsements that you can add to your policy if you want even more coverage. Also known as riders, these add-ons offer protection against perils not included in your policy or even extend the coverage you already have.

Some of the most common optional coverages for Delaware homeowners include:

• Flood insurance — Nearly one-fifth of Delaware’s land mass falls within a 100-year flood plain. Since homeowners insurance typically excludes flood damages, this coverage can give you added peace of mind!
• Earthquake insurance — Damages related to earth movement, such as earthquakes, are almost always excluded from typical home insurance. Delaware isn’t a high-risk state for earthquakes, of course, but they do occur and have been increasing in frequency over the last few decades. So, this coverage is worth considering for many homeowners.
• Windstorm insurance — This coverage offers protection against tornadoes, hurricanes, and other wind-based storms. While Delaware isn’t prone to tornadoes, coastal storms occur throughout the year and can cause catastrophic damage.
• Mold insurance — Unless it’s due to a covered, acute water event — like a burst plumbing pipe — homeowners insurance usually excludes mold damage. Adding a mold insurance rider can protect you against this costly damage.
• Water/sewer backup coverage — While different from flood insurance, this coverage can also help protect your home against damage caused by water intrusion, such as a backed-up sewer line or failed sump pump.
• Extended replacement coverage — If your home is damaged or destroyed and costs more than expected to repair or rebuild, this coverage can help pay the difference. 
• Scheduled personal property insurance — Your homeowners insurance covers costly items like jewelry, art, guns, and collectibles, but only up to a certain dollar amount. If you have very valuable items, adding this endorsement can better protect them up to their full replacement value.

What coverage is recommended in Delaware?

The right coverage for you depends on where you live, your budget, and even the type of home you have. For example, Delaware condo insurance offers different protection from an HO-3 policy (designed for owner-occupied homes), while owners with HO-3 or HO-6 policies will have very different coverage from a renter carrying HO-4 coverage. 

So, the first step is really understanding what you need. 

Beyond that, your homeowners insurance policy should contain some combination of the following:

• Dwelling coverage to protect your home’s actual structure in case of unexpected damage or total loss. 
• Other structures coverage to protect any valuable structures on your property. Even if they aren’t attached to your home, these structures could still be damaged by a covered peril and would be costly to repair or replace. 
• Personal property coverage to protect your belongings against damage, theft, or other forms of loss. Many homeowners policies will even extend coverage to your personal property when you’re away from home; if your wallet is taken out of your car or your phone gets stolen at the library, you may very well be covered.
• Personal liability protection in case someone else is injured at your home. This coverage also extends to someone’s property damage or injuries for which you (or a family member) may be liable and can help pay for lost wages, medical bills, legal fees, and more.
• Loss of use coverage to help cover added expenses if you are displaced from your home. If your property is deemed uninhabitable due to an eligible peril, this coverage can help pay for a temporary rental home or hotel stay, laundry services, restaurant meals, etc.

Since Delaware is at risk of coastal storm exposure, homeowners may also want to consider adding coverage for things like windstorms and floods. 

Insuring your home in Delaware

Getting an idea of pricing is the first step toward buying homeowners insurance in Delaware. Quotes can often be obtained online in just seconds, usually just by providing a little bit of information about yourself and your home.

In order to get accurate quotes, you’ll need to have an idea of how much coverage you need and what kind works best for your home. This means knowing how much your home is worth, how much your belongings would cost to replace, and approximately how much it would cost to rebuild after a total loss. If you need help, your carrier can help you estimate these coverages.

Once you have some quotes in hand, you can begin comparing options and even adjusting the policies. Want to beef up your total coverage limits? Add riders for things like floods and earthquakes? Insure your valuable jewelry and art? Now’s the time to make adjustments.

You can also choose your deductible. Deductibles may be a flat dollar amount, usually starting around $500 or $1,000, or a percentage of your home’s insured value. In some cases, you will have a different deductible for one type of loss than another; for example, you might have a 2% deductible for wind and hail damages but a 1% deductible for any other type of loss.

Once you’ve built the policy that’s right for you, your home, and your budget, you can go ahead and complete your purchase. This means paying for the first month, quarter, or even year and selecting the start date for your coverage. Some carriers may also require a home inspection at the start of a new policy, either in person or through a specific mobile app. 

Is Delaware homeowners insurance required by law?

You are not legally required to buy home insurance in Delaware, either by state or federal law. However, if you still have a mortgage on your property, your mortgage lender usually requires homeowners insurance on your Delaware home.

Even though you will pay the premiums, mortgage lenders require homeowners to purchase insurance that protects their assets (the home) against damage or total loss. Once your home loan is repaid, you’ll have the choice to buy insurance or go without (though carrying active coverage is almost always a good idea!)

Still have questions?

If there’s even more you want to know about Delaware home insurance coverage, here are some of the most frequently asked questions.

Is homeowners insurance expensive in Delaware?

The average annual premium on a Delaware homeowners insurance policy is $1,265. This is about 50% lower than the national average of $2,377.

What happens if you don't have insurance in Delaware?

You aren’t legally required to carry homeowners insurance in Delaware or any other state in the U.S. However, if you still have a home loan, your mortgage lender will require you to provide adequate coverage for the home. If you don’t buy a policy or your coverage lapses, your mortgage lender will typically buy force-placed coverage at your expense, even though this coverage doesn’t protect you.

How much is home insurance in Dover? 

The cost of home insurance in Dover, Delaware, depends on your home type, where you live (your ZIP code), the amount of coverage you buy, your deductible, and even your claims history. Statewide, the average homeowners insurance premium is $1,207.

What is proof of residency in Delaware?

In order to prove that you are a Delaware resident — either to get a drivers license in the state, register a vehicle, etc. — you’ll need to show that you maintain a physical presence there. This means providing evidence such as utility bills, voter registration cards, insurance policies, credit card statements, and more with both your name and your Delaware address listed.

How long do you have to live in Delaware to claim residency?

To claim Delaware residency, you must live in the state for at least 12 months, maintaining a predominant physical presence. That is defined as being physically present in the state at least 183 days out of the year.