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23 February 2012

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Home Owners Insurance: Coverage for Your First Home

Buying your first home is an exciting and, at the same time, stressful time. You areready to enter the world of home ownership, but you also want to protect yourinvestment. In most cases, the mortgage lender will insist that you get homeownersinsurance to protect your first home. But since it is all new to you, the idea ofdiscussing homeowners insurance can seem intimidating.Take the time to understand the various reasons why you need homeowners insurance to gain a better understanding of what homeowners insurance does tohelp you. Preparing yourself to have a well informed conversation with yourinsurance agent will help you to get the most from your first homeowners policy.

Property Coverage

The most obvious reason that homeowners insurance is important is because it canhelp you replace property lost to theft, fire or some natural disasters. Butfirst time homeowners can often take the policy for granted and forget to read thefine print.Most homeowners policies do not cover for incidents such as floods, which means thatyou have to provide that coverage in a separate policy. Do not assume that yourpolicy automatically covers every kind of damage. Ask what the coverage includes andbe sure to get any addendums to cover potential hazards in your area. For example,if you bought a home in an area known for flooding, and the basic homeowners policydoes not cover flooding, then get an addendum that will cover you.Remember that your homeowners insurance covers your property and possessions. One ofthe things that new homeowners forget to do is submit a detailed catalog of everypossession in their home to their insurance agent. If your insurance company doesnot know what you own, then it cannot accurately cover you in case of a loss.

Liability Insurance

First-time home buyers never think about what could happen if someone gets injuredwhile on their property, or who pays for the damage caused by a tree branch thatfalls on the neighbor?s car. When someone gets hurt on your property, it is notalways their health insurance that covers the cost of medical care. The same can besaid for the potential lack of coverage offered by the neighbours auto insurance policyif your branch falls on his car.Make sure that your homeowners insurance policy carries a sufficient amount ofliability coverage. Medical expenses can be costly, and if you live next door tosomeone who owns expensive classic cars then that branch could cost you a lot ofmoney.Your agent will review the different levels of liability coverage available to youthrough your homeowners policy. Take the time to choose the coverage that is rightfor you.

Vacation Damages

Did you know that your homeowners insurance policy may be able to cover you ifyou damage your personal property while on vacation? This is another aspect ofhomeowners insurance that new homeowners often neglect to ask about. If you packup your laptop computer to drive to a relatives house for the holidaysand your laptop gets destroyed, then that could be covered under your homeownersinsurance policy. This is why it is so important to talk to your agent about gettingthe right coverage and setting the right deductibles for your situation. If you liketo drive to relatives? houses frequently, then you may want to get a lowerdeductible to make sure you are covered for any loss.Entering the world of home ownership is something that many people consider to be adream come true. The dream can get a little too real when the paperwork starts, butit is important to pay attention to every detail of your home buying experience.One of the most important details is your homeowners insurance. When it is yourfirst home, you want to make sure that you and your family are as well-protected aspossible.Entering the world of home ownership is something that many people consider to be adream come true. The dream can get a little too real when the paperwork starts, butit is important to pay attention to every detail of your home buying experience.One of the most important details is your homeowners insurance. When it is yourfirst home, you want to make sure that you and your family are as well-protected aspossible.