Buying a home of your own is the dream of many. Probably it will be the biggest purchase of your life. There are so many things to take care of before you ultimately zero down on your choice. The budget, property taxes, neighborhood, the number of bedrooms you need are only a few of them. These things are important, no doubt, but you must, at the same time, look for a homeowner insurance policy. An insurance policy will not only save you from mishaps like fire, property damage, or theft, but it will also help you in getting a mortgage. This article covers the different types of home insurances that you can avail of.
Standard homeowner insurance policies
Dwelling coverage
This coverage provides insurance for the structure of your home. It includes the floors, walls, ceilings, built-in appliances, and any other attached arrangement as well. Dwelling coverage also gives you protection against fire accidents, damage caused due to hail, theft or vandalism, etc. Depending on your policy limit, you can file your claim. That will help you cover the cost.
Contents coverage
Contents coverage protects the furniture and other belongings in your home. As per the policy, if any damage happens to the contents, you will receive funds equivalent to the value of your belongings.
Liability insurance
Liability insurance covers any physical injuries or property damage that you or your household members can cause to others. For example, if your dog bites a person, liability insurance will pay you out.
However, these standard insurances do not cover all that needs to be covered. That’s why it’s better to compare the home insurance quotes of the various companies and, as per your budget, include other optional coverage. Choose them wisely by analyzing your requirements.
Optional home insurance coverage
Flood insurance
It covers any damage to your property or belongings caused by a flood. It would be good for you to have this if you live in a flood-prone region.
Earthquake insurance
It covers any damage caused by an earthquake.
Replacement cost coverage
This will help you to get additional coverage if you need to rebuild your home. If you have owned a property for a considerably long period and are concerned about its depreciation, taking out replacement cost coverage would be the best thing to do.
Other structures insurance
If you have a property unattached to your house, other structures insurance will cover the damage for them. In the event of an accident, if your shed, gazebo, or independent garage gets destructed, you will get coverage if you possess this insurance policy.
Sewer backup
Any loss caused due to sewer backups or sump pump failure would be covered by this insurance. You can also claim the money if you find tree roots damaging your sewer line.
Umbrella insurance
They will additionally pay for bodily injuries, personal injuries to others, and property damages that do not fall under your actual homeowner’s policy.
Conclusion
So, having homeowner’s insurance is a must for every home buyer. However, before choosing the policies, you must have a clear idea about what you will need and what you can do without. And do not forget to compare the quotes of the different insurance companies. After all, it’s your hard-earned money that you would be spending.