Buying your first home is a memorable milestone in your life. Your home will have both monetary and sentimental value to you, which is why you need to make sure it’s protected.
The process of purchasing homeowner’s insurance can seem daunting. There are several different options for different types of homes and aspects of a home. But if you keep the following simple concepts in mind, you will know what to look for to best protect your home.
Standard policies DO NOT include everything
The threat of an earthquake is serious in California, while tornado damage is more likely in Kansas. Geographical differences introduce different risks that are not typically covered under a standard insurance policy. Make sure to do your research about what risks are relevant in your area so you don’t get blindsided by a natural and financial disaster.
Regardless of where you live, it’s a good idea to add flood coverage to your policy as well. Even in the desert states, rare but severe rainstorms happen and can cause a great deal of damage to your home.
Take a household inventory
Homeowner’s insurance protects not only the physical structure of your home but the contents as well. Your furniture, artwork, musical instruments, electronics, and other valuables can be protected and replaced by including personal property insurance in your policy.
Considerations for an older home
If you must rebuild or repair part of an older home, you may be faced with major renovations in order to be in accordance with current local codes or ordinances. This may include a larger investment than you anticipated, and not all standard insurance policies cover code upgrades.
If you are buying an older home that hasn’t had many renovations, consider adding ordinance, law, or extended replacement coverage to your policy, which will cover more of your replacement costs.