First-Time Homebuyers: What You Need to Know about Homeowner’s Insurance

Written by  //  2017/11/09  //  Home Insurance  //  No comments

homeowners insurance

Being a first-time homebuyer means you’re learning a lot as you go. This time in your life is a little overwhelming with all the new information coming at you every day, but you’re going to be grateful for all of it when you finally reach a point in your life when you buy your second home. Right now you’re learning all about buying a house, but have you taken the time to learn about homeowner’s insurance and why it’s so important?

Not Everything Is Covered

Common sense dictates you need homeowner’s insurance when you buy a home, but you might not realize it’s not all comprehensive. Your policy might not cover things like flood damage, or it might cover certain types of flood damage but not others. Just because you’re protected from storm surge caused by a hurricane doesn’t mean your insurance company is paying out for a burst pipe and the water damage that occurred because of it. Companies such as Northeast Insurance Agency and other local agencies recommend you discuss the type of coverage you know you need and what you might need when you ask for insurance rate quotes to compare prices.

Your Belongings Aren’t Automatically Covered

You have a policy for your home, but did you know it might not cover everything you own? It only covers up to a certain amount for specific items, and most policies don’t insure any one item for more than a small amount. Let’s say you have your grandmother’s diamonds that are worth $100,000. They’re stolen from your home, but your insurance company might not pay you that amount of money. They might only pay you about $1,000 to $2,000 unless you have special coverage for exceptionally valuable items. Keep this in mind when you buy a policy.

Your Claims Can Be Denied

You have a large tree that’s been touching the side of your house for months due to overgrowth, and you know you need to cut it down. If it falls onto your home during a storm, your insurance company might deny the claim if they find out you knew it was a problem for months and failed to take the required precaution to remove the tree or the branches putting your home in danger. Be sure you’re always keeping up with your maintenance if you want your claims approved.

You Want the Insurance

Even with potential that your claims can be denied, you still want the insurance. It is better to have it and not need it than need it and not have it at all. You want to make sure that your home is taken care of at all times. If something were to happen, it could cost you a lot of money. In some cases, it can cost more than what you are able to afford on your own. Therefore it is better to have the insurance just in case the worst were to happen.

Homeowner’s insurance is no fun to deal with, but you’ll be so glad you have it if anything should happen to your home. Now is the time for you to review the policy you’re thinking of buying and be sure it has everything. Talk to your agent about adding additional coverage as needed.

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