In order to close on your new home, it will be important for you to begin considering your options for homeowner’s insurance. While you might like to consider insurance just another monthly expense that you can’t afford, when you consider the worst case scenario instances that the insurance covers, you might think twice about holding off on finding a policy. Though you hope that there is never a need to file an insurance claim, having that type of protection for yourself, your personal belongings, and your home is essential.
What is Homeowner’s Insurance?
First it is best to understand what home insurance really is. In a nutshell, it is a type of property insurance that is provided to protect an individual’s property and personal belongings as a result of unforeseen or unpreventable circumstances such as natural disasters, theft, or vandalism. In most states, it is required for all properties to have some basic form of protection before they can legally purchase a property. There are essentially seven types of homeowner’s insurance, all of which are designed to provide varying levels of protection based upon the needs of the homeowner.
How Much of Your Home is Covered?
Not many home owners take the time to really evaluate a policy before signing a contract with the insurance provider. It is important to understand that there are various levels of protection and not all policies will cover the entire value of your home or its most critical appliances without additional costs. Be sure to review the insurance policy in its entirety to determine what is covered and what is not. Experts say it is ideal to find an insurance provider that will give you full coverage of the building cost of your home. That way, should a fire or some other disaster damage your house completely, you have the funds to get it rebuilt.
How Much of Your Personal Belongings Are Covered?
A standard homeowner insurance policy will cover a percentage of your personal belongings that have been damaged in the event of a disaster or recent theft. In most cases, this amount will be equal to about half the value of your home. Be sure to sit down and go over the cost of your personal belongings to ensure that that is in fact enough coverage to replace stolen or damaged goods.
What’s Not Covered?
Another factor to consider as you begin shopping around for the best homeowner’s insurance is what isn’t covered. Not every type of natural disaster is covered under your typical policy. There are some insurance providers that will not cover damages under a basic policy that resulted from a flood. If you live in an area that is susceptible to flooding, chances are you want to upgrade to a policy that covers this completely.
By adhering to the above advice and really evaluating the various insurance policies and their coverage, you are most certainly going to secure a policy that protects the things you care about most. When it comes to something as significant as purchasing a home, you want to make sure your investment is protected from beginning to end. Be sure to take your time in selecting reliable home insurance and evaluate the policies thoroughly for complete protection.