If you’re a first-time homebuyer, one thing you need to make sure you have, when you purchase your home, is homeowner’s insurance. While having homeowner’s insurance is not required by law, banks and lenders will require you to have it. This month we would like to discuss what homeowner’s insurance is and what it can cover.

What is Homeowner’s Insurance?

Plain and simple, homeowner’s insurance will compensate you if something happens to your home, your property and everything in it. It comes into play should your home be damaged or destroyed from a natural disaster or theft. It also helps cover you if someone injures themselves on your property. A home is your largest investment and you want to make sure it’s protected with insurance!

What does it cover?

A standard homeowner’s insurance will include the following types of coverage:

  • Dwelling – this covers damage to your home and any attached structure.
  • Other Structures – this would be any stand-alone structures you may have on your property.
  • Personal Property – This covers any of your personal belongings in the event they are stolen or damaged.
  • Additional Living Expenses – If your home needs to be repaired and you can’t live in it, this covers any temporary living expenses you may have.
  • Liability – If someone is injured on your property, whether it is unintentionally or through neglect this will cover costs.
  • Medical Payments – If the above individual has any medical expenses, this will help to pay for them.

What is not covered?

Something to keep in mind is that it doesn’t cover everything. One in particular if you intentionally cause damage to your own home. Below are scenarios that are not covered.

  • Flooding – if you are looking for a home in a flood zone, you will need to purchase flood insurance.
  • Earthquakes, landslides and sinkholes
  • Infestation by mold, birds, vermin or fungus
  • Wear and tear or neglect
  • Nuclear hazard
  • Government action, including war
  • Power failure

Now that you know a little more about homeowner’s insurance, give us a call and let us provide you with a free quote! Contact us today!