When you purchase a home, you take on a whole new level of responsibility.
You have to make mortgage payments on time, maintain the property well and properly insure your home.
All of that can add up to a lot of stress.
Of all that needs to be done for your home, the homeowners insurance that you purchase is one of the most important tasks.
Let’s take a look at what you need to know about this crucial coverage.
This insurance covers damages to your home, as well as losses and assets.
To put it simply – it’s protection for your home and all the things in it.
In addition, it acts as a safeguard for you if someone experiences an injury while they’re on your property, whether it’s an accident inside the home or a backyard mishap.
Sometimes a pet can wreak havoc on your living space. Fortunately, homeowners insurance covers pet damage, too.
It’s important to note that there are exceptions to what is covered.
For example, if you want to be covered in the case of an earthquake or flood, you would have to purchase a separate policy.
Damage that’s a result of failing to maintain your home isn’t covered, either. The financial responsibility of keeping up your home is all yours.
If you’re like most people, your house is the most valuable asset you possess.
Protecting it is not something you should take lightly.
While homeowners insurance isn’t a legal obligation, your mortgage lender will require you to have coverage in order to protect their financial investment.
If you fail to secure coverage, your lender has the right to purchase it and then pass the cost on to you.
Here’s a comprehensive look at what’s covered.
You may not think that this type of policy is all that important – until a friend comes over and breaks a leg on your swingset!
These kinds of situations are more common than you may think and it’s wise to make sure all your bases are covered.
You have choices for further coverage.
These are some of the most common additional policies that homeowners choose to add:
First of all, it’s important to note that the resale value of your home or the amount that you paid for it are not equal to the cost to rebuild it.
To determine the correct amount of coverage, calculate the expense to rebuild your home – not what you paid.
The cost to rebuild will be based on current construction costs.
If you don’t have enough insurance and disaster strikes, you’re on the financial hook for the difference.
When you work with an independent insurance agent, he can prevent you from being under- or over-insured – making sure you’re getting the appropriate coverage for your unique situation.
In terms of personal property coverage, 50% of your home’s worth is standard. Your agent can help you tweak that number to make sure you have the full protection you need.
The world of homeowners insurance can be a confusing one.
There are a lot of weighty decisions to make and the consequences for making a mistake can be dire.
You can always go online and find a random insurance provider to purchase your homeowners insurance through.
But, will you be getting the best deal? Will the agent you speak with be there for the long haul? Will you even speak to the same person twice?
If you can’t answer these questions with a resounding, “Yes!” you should go a different route.
It’s best to work with an independent expert.
Here’s why you should choose to work with a local insurance agent.
It may not be legally required, but securing homeowners insurance is vital.
The protection it offers can safeguard you from the financial devastation you’d experience if something happened and you weren’t covered.
Work with an independent insurance agent to make sure you have the coverage you need at a cost that fits into your budget.
Are you satisfied with the homeowner’s coverage you have?