You have finally joined the 65 percent of Americans who are homeowners.
Getting your first home is a big step. Even if you probably financed it with a mortgage, the peace of mind that comes with knowing every payment you make takes you close to full ownership is priceless.
You’re excited, but don’t let the excitement get in the way of important things. You need to take care of your prized possession, right from day one. An effective way to do this is insuring it.
In this article, we’re fleshing out important insurance policies you need to purchase as a first-time homeowner.
This is typically the first type of insurance that comes to mind when you’ve bought a home, and for good reason. Homeowners insurance covers the structure of the house and your possessions against damage, theft, and other kinds of loss.
For example, if a fire razes down your property, the insurance company will compensate you for your losses accordingly. You’ll get the money to make the necessary repairs and replace any possessions that might have been damaged in the fire.
Most homeowners’ insurance policies also provide protection against personal liability for damage or injuries. If someone’s injured on your property and they sue you for their injuries, your policy will kick in and compensate them.
If you bought the home with a mortgage, it’s likely that you were required to purchase this insurance policy before the deal could be sealed. If you bought in cash, however, don’t consider this policy a luxury. It’s an essential policy to have.
This article explains in detail how you can choose the best home insurance policy for your needs.
You’d think that homeowner’s insurance provides comprehensive coverage, but you’d be wrong. Flood and earthquake damage, for instance, is generally not covered.
This means you have to purchase separate flood and earthquake insurance policies or put them as add ons to your homeowner’s insurance policy.
On its own, flood insurance compensates you for water damage. This can be damaged from natural floods or plumbing leaks.
Earthquake insurance works in a similar way, but its coverage is limited to damage arising from earthquakes.
While these policies might seem like luxuries especially if your area has a low to no risk of flooding or being hit by an earthquake, stranger things have happened. You can never be too sure about natural disasters.
It’s better to be insured than regretful.
This isn’t an insurance policy that directly covers your home, but if you have a mortgage, it’s in your best interest to purchase it.
Think about this: what will happen to your house if you’re no longer there to pay the mortgage? Will your dependents afford to pay up? If no, they’ll lose the home.
This isn’t what you want. With life insurance, you’ll rest in peace, knowing your family will use your death benefits to offset the mortgage.
Purchase These Important Insurance Policies for Homeowners
As a first-time homeowner, you’ve already made a big financial investment. It’s understandable if you don’t want to spend any more money on the home, but you’ll be making a big mistake if you don’t. You have a duty to protect your assets with these important insurance policies.
Keep reading our blog posts for more tips and advice for homeowners.