If you are a first-time home buyer, you face a number of unknown challenges. Home insurance is an important step in the buying process. This insurance protects one of the largest purchases of a lifetime. With homeowner’s insurance, you can protect not only the equity, but also the potential growing value of your property over time. It’s worth taking some time to really understand your options. In some cases, you may want to add a supplemental policy for an extra layer of protection.
What does homeowners insurance cover?
It’s important to understand what your home insurance covers – and what types of perils are excluded. The homeowners insurance policy you purchase would likely be an HO-3 if you purchased a single-family home. It is the most common type of homeowner’s insurance, providing a comprehensive level of protection, including personal liability. Here are some other protections that homeowner’s insurance policies typically provide:
- Coverage for personal property: Your personal possessions are valuable, so most homeowner’s insurance policies provide coverage if your property is damaged by a covered peril.
- Housing coverage: The home portion of your home insurance can protect the actual structure of your home.
- Other structures coverage: Other structures include fences or detached fences, which are usually covered by an HO-3.
- Coverage for medical payments: Accidents happen and if someone has an accident and is injured on your property, your homeowner will probably cover their medical bills.
- Liability coverage: If someone sues you for damage to your property, your homeowner’s insurance may cover legal fees and judgments, up to policy limits. For higher levels of coverage, consider an umbrella policy.
However, as effective as your home insurance is, it is not without some exceptions. For example, damages caused by certain natural disasters, such as floods and earthquakes, are not covered. You can purchase flood insurance or earthquake insurance to protect yourself against any of these damaging events. Our insurance agents will consult with you to assess which supplemental insurance makes the most sense for you, your home and your budget.
When should I buy home insurance?
As soon as you close on your home, you need to have home insurance in place. Although you may not be required by state law to purchase homeowner’s insurance, your lender will make it a condition of a mortgage agreement. Without it, closing can be delayed, so be sure to prioritize homeowner’s insurance and make sure it’s in effect by the closing date. Your mortgage company may recommend homeowners insurance, but it is recommended that you speak with one of our local agents to find the best insurance at the most affordable rates, tailored to match your individual situation.
Find the right home owner’s insurance for you
Buying home insurance can be frustrating and confusing, especially for a first-time buyer. Let our experienced insurance agents help you find the right insurance for you and advise you on additional insurance that can protect your home, property and financial health.