Purchasing your first home is exciting and scary at the same time. There are so many things to consider. You know you must have home insurance, but do you know what a standard home insurance policy actually covers? Here are a few things to know.
A standard homeowners insurance policy typically covers:
- Dwelling Coverage: Protects the physical structure of your home and any permanent fixtures like a garage
- Other Structures: Covers fences, sheds, and other separate structures from your main house that are on your property
- Personal Property: Insures belongings inside and outside your home, such as furniture, clothing, electronics, etc.
- Personal Liability: Provides protection from lawsuits if someone is injured while on your property or if you cause property damage to someone else
- Medical Payments: Covers medical expenses incurred from injuries to a guest sustained on your property, regardless of fault
- Loss of Use: Helps cover temporary living expenses such as hotel, meals, and transportation costs if you are displaced from your home temporarily
- Common Covered Perils: Most basic homeowners’ policies cover damage from fire, freezing, lightning, windstorms, hail, and vandalism.
- Other Coverage Options: Water back-ups, sinkholes, earthquakes, service line coverage, equipment breakdown, special limits for water and mold
According to Lynn Swink, Director of Personal Lines, “When shopping for the best price, it is essential to try to compare ‘apples to apples’ on coverage. However, carriers vary greatly in their offerings, so that is not always possible. It is important to weigh the quoted coverage in addition to the premium to determine the best value.”
Partnering with an experienced insurance agent is invaluable for a first-time home buyer. They can clarify what is covered/not covered, what could be excluded, and where you may need to add additional coverage.
