When you purchase a home, if you are like 98% of home owners, you took out a mortgage to pay for it. As a result, it’s a necessity for you to have and carry homeowner’s insurance. It’s not enough just to get any type of homeowner’s insurance policy; you need to get one that is going to protect you, your family, and your property and assets for many years to come.
Many homeowners invest a significant amount of their personal savings on the down payment of this home. As a result, they have a tendency to cut back on other expenses. One of those expenses may be your homeowner’s insurance policy.
Understanding the bare minimums required.
When you speak to a lender about a mortgage, you will likely receive information about the bare minimum required with regard to homeowner’s insurance policies. They have their minimums that need to be met. This is usually enough to cover the cost of the house in the event of a fire, flood, or other disaster that completely destroys it. It’s not going to cover your personal possessions inside, your personal liability in the event that somebody is injured at your property, or other issues.
If you try to save money and cut corners by just going with the bare minimum, you are exposing yourself and your family to an incredible amount of risk. If you don’t know exactly what’s covered by your homeowner’s insurance plan, you’re probably not properly covered.
Focus on protecting your long-term investment and assets.
Carrying homeowner’s insurance may seem like an expense, but it is an investment in protecting your long-term assets. Every single homeowner will have some type of property within the house. This is usually in the form of furniture, personal mementos such as pictures, electronics like televisions, stereos, computers, and much more.
Make sure those items are protected as well as the house. You’ll also want to be sure that a pipe bursting within the walls of your house will be covered by your homeowner’s insurance policy. You should also see if there are coverage options available to help pay for room and board at a hotel or other facility in the event that there is significant damage to your home that needs to be repaired before you can move back in.
There are many potential options with regard to homeowner’s insurance, and speaking to an experienced broker is the best way to ensure that you, your family, your property, and your house are protected as well as possible.