Purchasing a home is a considerable achievement. It’s the rite of passage to finally realizing your independence and stepping up to prove the amount of responsibility that you can handle. It’s a highly exciting time of your life, so thrilling that you may forget a few essential things that could lead to substantial inconveniences in the future.
Before jumping into the excitement of purchasing a home, there is an additional, but an essential cost that you might overlook: home owners insurance.
What is Home Owners Insurance?
Homeowners insurance is an insurance policy that ensures protection against losses and damages to your home. It will cover private property, as long as you can prove you own them.
Primarily, it protects your home from internal and external damage, theft, and personal liabilities. Some insurance policies will also cover payments for accidentally damaging your neighbors’ house.
Additional coverage includes protection against natural disasters. This is crucial, especially if you live in an area that is prone to floods, hurricanes, and the like.
Good insurance agencies provide additional benefits to standard insurance packages, such as protection against inflation, emergency home removal, and plant maintenance.
How Much Does it Cost and How Does it Work?
The price of a homeowner’s insurance policy depends on various factors, such as the area that you live in, the type of property you own, and the amount of coverage you need. Add-ons such as flood and earthquake insurance will also incur an extra cost. A professional insurance agent will guide you in determining what you need and will calculate the value of your coverage.
Claims adjusters are also involved in the homeowner’s insurance. When you encounter exterior damage, for example, they will estimate the cost to revive your property. If they come up with a quote of $8,000 and you possess a $2,000 deductible, then the insurance agency will cover the rest of the $6,000 if your case has been approved.
Should I Get Homeowners Insurance?
Some mortgages include home owner’s insurance, but if yours don’t, then there are great options on the market. Homeowners insurance is a necessity for every home as you want your property to last as long as possible.
Accidents and damages in homes are unavoidable, as the wear and tear of daily use or unimpressive maintenance may produce detrimental results. For example, water damage will rust pipes and create an environment for mold to grow in walls. Meanwhile, cracks in ceilings are dangerous and can lead to leaks or falling debris. In cases like these, proper homeowners insurance will protect you.
It’s important to note that insurance always has a liability limit, which will determine the amount of coverage that you receive. You should keep this in mind when discussing insurance plans with your agent. Before purchasing insurance, make a list of all your questions and concerns, and be sure to relay them to your agent during consultations. They will help you get answers specific to your situation, and will make you feel more prepared!