Buying your own home is one of the best decisions of your life whether you are a first-time buyer or a seasoned pro. You would want to protect your biggest investment in case of any emergency.
Buying home insurance is not essential but it is important to preserve your home, belongings, and your financial well-being. But navigating insurance policies can be difficult especially when you don’t know what’s covered and what is not.
Let’s have a look at some of the things that you should consider before buying an insurance policy.
Carefully Read the Policy
Make sure to read through your insurance policy to clarify the terms and conditions. Some terms are not perfectly elaborated in the policy. Alternative terms might be used which might confuse you, so it is better to confirm with your insurer.
Common homeowners coverage usually has three important components.
- Dwelling coverage which includes damages and loss done to the actual building that you live in.
- Covers loss or theft of your belongings.
- Personal liability coverage includes medical, legal, and repair costs for any damage caused to others.
Keep a Check on the Weather
Since homeowners are feeling the cost of climate change now more than ever, it has become an important reason why you need a home insurance policy for your home. Severe weather conditions have caused property damages that need massive repairs.
Insurance policies rarely cover catastrophic weather and natural disasters. So make sure that your insurance policy covers it. You can add separate storm policies based on your needs and locations.
Think About Flood Insurance
Even a small water leak can damage the furniture and spur mold growth on the walls and insulation. Many homeowners decline to purchase a flood insurance policy just because they live in a low-risk area. But you should not avoid it just because you live in a flood-free zone.
Flood policies are not just about heavy rains but also overflowing rivers and melting snow. If you are not in a high-hazard area, you can consider a lower premium. You can personalize your policy to buy what is needed.
Cover All Your Assets
You need to cover all the assets of your home. Some insurance policies don’t cover valuable items like expensive jewelry, designer clothes, watches, electronics, and musical instruments. For this, you need to document the content of your home room by room.
Make sure to include a detailed description of each item like purchase date, model, serial number, photos, receipts, video, and appraisals. You can store the record somewhere safe like a cloud solution.
It may sound time-consuming but a few hours of inventory check can get you the right coverage and save you hundreds of dollars in replacement.
Maintain Your Coverage
Many insurance companies list conditions you must fill in to maintain your coverage. If th break the conditions, the insurer can deny your claim. If you run any kind of home business, your insurer must be notified.
Also, inform the insurer before you rent out the house or offer Airbnb services. Be transparent with your insurer and let them know about the major renovations so that you can maintain your insurance policy.