Congratulations on taking a step toward becoming a homeowner for the first time. Buying a home can be exciting yet exhausting. Before taking ownership of the house, homeowners insurance is one of the crucial things you should put in place to safeguard your investment.
What is homeowners insurance?
Homeowners insurance pays to repair and replace your belongings and rebuild your home if a covered incident occurs, such as a fire, theft, vandalism, windstorms, etc. Not only that, it also kicks in to cover the medical costs of accidents that occur on your property.
What does homeowners insurance cover?
Homeowners insurance covers various aspects of your home and personal belongings. While there are several options offering varying levels of protection, a typical homeowners insurance policy covers the following:
Structural - This part of your policy protects the structure of the home itself.
Personal property - Your furniture, electronics, jewelry and other belongings are also covered.
Outbuildings - Homeowners insurance also pays for repairing or replacing structures such as the garage, shed or fence.
Liability - If someone sues you for accidents on your property, homeowners insurance can help pay medical expenses and legal fees. For example, if the postman gets hurt from a fall on your property.
Medical payments - It also pays the medical costs of people accidentally injured on your property, regardless of who is at fault.
Living expenses - While your home is being rebuilt, you may need to reside in an alternate lodging. Homeowners insurance takes care of it.
Homeowners insurance has limitations and exclusions, making it crucial to review your policy carefully and understand the extent of coverage so you can select the one that suits your needs. For example, damages caused by mold, pest infestations, and flooding are not covered.
When should I start shopping for homeowners insurance?
Once your offer is accepted and the purchase is finalized, you should secure your homeowners insurance policy. If you’re getting a mortgage, your lender will require you to have an active policy before closing.
Even if it is not legally mandatory to purchase homeowners insurance if you are buying in cash, having this policy is a smart decision that provides the financial safety net you need if something goes wrong.
Although you could use quote comparison tools, a call with your local insurance agent is a more effective way of ensuring you get a policy that suits your unique situation at an affordable rate.
Find the coverage that offers the most protection at a rate that’s right for you
As a first-time homeowner, it’s crucial to obtain the right homeowners insurance coverage to protect your investment and provide you with peace of mind. Our insurance agents are available to explain your options and help you shop for the right policy. Give us a call today.