Beginner's Guide to Homeowner's Insurance
Shopping around for the right homeowner’s insurance is almost as important as finding the perfect house. The ideal homeowner’s insurance will protect you when a natural disaster or home accident occurs.
What is Homeowner’s Insurance?
Homeowner’s insurance is financial protection that covers damage to your property and legal responsibilities for potential injuries or property damage that occur at a home residence. Most lenders require a level of homeowner’s insurance with a mortgage to ensure damages or accidents will be repaired or settled in a timely manner.
There are many homeowner insurance packages offered for homeowner’s insurance.
What Should Your Home Insurance Policy Cover?
Damage to the exterior and interior of your home.
Most basic homeowner’s insurance policies provide this coverage which is essential to have in case of events such as a fire, water damage (floods are classified differently), hurricane/lightning, or other disasters.
Loss or damage to personal belongings.
Items such as major kitchen appliances, furniture, and clothes will typically be covered under this line of your homeowner’s insurance policy. Some personal belongings may have an insured limit if they’ve been lost and taken outside of the home, i.e. jewelry.
Tip: Make sure to itemize the value of your possessions when you first move into your home and add items you include into your home to keep your policy current.
Personal liability.
Some homeowner’s insurance policies offer liability coverage to protect your family from fault for damages or injuries that may occur on the property. Not all liability coverages offer the same amount—make sure your family is covered for the right amount.
Flood and Earthquake Insurance is Different
Basic homeowner’s insurance policies will cover the majority of a home and family’s needs. However, if a residence is in a flood/hurricane zone or one with a history of earthquakes, earthquake or flood insurance should be an additional consideration.
