One aspect of buying a home that people don’t pay enough attention to is homeowner’s insurance. Although lenders require everyone buying a house to get some insurance covering basic risks like theft and vandalism, fire and smoke and other common forms of unintentional damage, such insurance is usually inadequate for your long term needs.
Adequate Coverage
Soon after becoming a homeowner, one of your top priorities should be to expand your homeowner’s insurance so that it becomes more comprehensive. For example, you will want your insurance to cover such things as personal items, your furniture and any structures on your property besides the house. These structures could be a garage, a shed or even a pool. However, if any of these additional structures are used for a home based business, then to cover them you will need a different type of insurance entirely, one that is geared more towards business needs.
Not Covered
If you don’t have a home business, but nonetheless keep business equipment at your home, then it will not be covered under standard homeowner’s insurance. The coverage is also likely to be minimal for such calamities as earthquakes and natural disasters or for the loss of extraordinarily expensive items in your house such as jewelry or works of art. You will need to purchase supplemental insurance in order to cover these things.
Personal Liability
One category where you should definitely add extra insurance is the area of personal liability to protect you from lawsuits if someone is injured on your property. It also gives you protection should your child or pet cause damage to other people’s property. Few lenders require you to have liability insurance, but it can prevent you from losing your home if you end up liable for somebody else’s medical bills or property repairs.
Protecting Your Insurance
The ease of availability for homeowner’s insurance varies from state to state. However, once you purchase insurance, you need to take steps to protect it. Resolve to avoid making claims unless it is absolutely necessary and fully justified. Otherwise, you may find your premiums rising to unaffordable levels or being discontinued entirely. One good idea is to have a high deductible so you are not tempted to makes claims over minor matters.
The best way to ensure that you are not caught short with too little insurance is to call your insurance professional today.
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