What do i need to know about Buying Homeowners Insuance

Buying a home is likely to be the most expensive purchase you will ever make. One of the most important decisions to consider while buying a house is what type of home insurance coverage you will need. Home Insurance can be confusing and it is important to dispel myths surrounding the coverage you have or think you have.

*Dwelling Coverage:

Many homeowners do not realize that they do not need to be covered for the full purchase price of their home. Remember the purchase price of your home included the price of the land on which your home is built.


Do not assume that your homeowners policy includes flood insurance. Most homeowner policies do not include flood insurance and it needs to be purchased as a separate policy.

*Flood Insurance is only needed for those who live in flood zones.

Many lending companies will insist that you have some flood coverage if you are within a Standard Flood Zone. Flood insurance is an important coverage for all homeowners because water damage repairs can be very expensive.

*If you get hurt in your home you are covered.

Home insurance policies are set up to protect you from possible lawsuits stemming from someone not residing in your home but is injured on your property. You and the others residing in your home are not covered.

*If a house is lost the insurance company will reimburse you for everything you say you own.

In order for you to recoup your loss of household items you will need to supply receipts, bills or photos. It is a very good idea to keep these things in a fireproof box or in a bank vault for protection.

*In case of robbery the entire amount of valuables will be recovered.

The amount agreed upon when a policy is first bought is the amount of protection received. If any new items of value are bought notify your insurance company to insure the increased coverage.

Loss from lack of maintenance is covered.

Your home will not be covered for damages due to lack of maintenance. Take care of those repairs as soon as possible Home insurance generally covers damage to your property that is considered a loss due to natural causes.

*You have to have homeowners insurance in order to own the home.

While it is not necessary for you to have homeowners insurance without it you are financially unprotected and could lose everything.

*If a claim is submitted your premiums will increase.

Many insurance companies will not increase premiums for a few minor claims. There are, however, certain claims that can cost less to repair than your deductible would have you pay.

*In order to be able to keep the cost of homeowners insurance down, you have to cut back on what is covered.

It is unwise to be underinsured. Protective measures such as burglar alarms and smoke detectors will reduce insurance costs. Some insurance companies offer a discount for combining insurance policies for your auto and your home.

Understanding the complexity of a homeowner’s insurance policy is well worth the time it takes to speak with professionals. Remember myths about your coverage could mean the difference between protecting your home or losing it. That mistake is one that few people can afford to make.