Without proper insurance protection, it just takes one accident to end the dream of home ownership. A home is often the biggest purchase a person will ever make. Who would not want to protect such a grand purchase with the right insurance coverage?
Homeowners insurance is specifically in place for protecting your home and the possessions within it from the consequences of some kind of unexpected event that causes loss. Typically this would include fire, theft, and accidents. And most importantly, this form of insurance can also help to protect your financial health should someone be hurt on your property and take out a lawsuit against you.
Who needs this coverage?
It really is this simple: You own a home, therefore you need home insurance and are likely mandated to obtain it by the financial institution that lent you the money to buy it. If you attempt to avoid purchasing a policy, then your lending institution will acquire one for you and then add it to the cost of your mortgage payments. Banks like to protect their investment too.
How about natural disasters?
Most likely your policy coverage will extend to some natural disasters, but not all. Almost universally, earthquakes, floods, and hurricanes will not be a part of a homeowners’ policy and one would need to obtain separate policies. Be sure to ask your insurance professional about what coverage for natural disasters is best suited to you and the area in which you live.
How much coverage?
Insurance coverage types are available at varying levels of coverage. Usually your state will have set minimums for what your insurance company should offer in a policy. Of course, your bank may also have their own minimum requirements for how much coverage you must obtain. As a general rule, the more expensive your home and the possessions within, more you will likely spend on coverage premiums.
Antiques and other valuables?
Riders (supplemental coverage) are helpful for your valuable items, like priceless jewelry and or antiques. When buying a home policy, your agent should enquire as to what, if any, unique or valuable items you might own. Keep in mind that being completely honest now will save you a lot of headache down the road. Withholding or misrepresenting information from your agent can result in an item losing its coverage in the event of some kind of an accident. So, tell the truth to the best of your knowledge and be safe.