The Complete Guide to Homeowners Insurance for Newbies

As a first-time homeowner, you should get familiar with homeowners insurance. From the rooftop to kitchen, we’ve gathered some homeowners insurance basics. Learn how it helps you to protect one of your biggest investments—your home!

In the article below, you’ll find a complete guide to homeowners insurance for new homeowners. Continue reading to learn more.

Homeowners Insurance Covers the House and Your Belongings

Homeowners insurance covers more than just the physical structure that you live in. Most policies also cover your personal belongings inside the home.

That means you’ll usually be covered by insurance if your house is broken into and the burglars steal something inside the home.

Property Protection Covers Your Dwelling

Do you feel overwhelmed when shopping for homeowners insurance? When shopping, you’ll probably come across a few different homeowners insurance packages.

These packages usually include different coverages. Property coverage includes dwelling, personal property, loss of use, and liability. The dwelling coverage will reimburse you for most damages to the physical structure.

These types of damages usually occur because of storms or a fire. Be sure to look at the amount of coverage offered by each plan. You should ensure the coverage can cover the entire cost of rebuilding your home. You’ll also have to think about the costs of rebuilding any other structures on the property. Common additional structures include garages, sheds, and gazebos.

While it is rare that you’ll have to use insurance to rebuild your entire house, you want to make sure that you’re covered if serious damage does occur.

You’ll Have to Itemize Your Personal Possessions

In order for the homeowners’ insurance company to provide you with the proper coverage, they’ll need to know about everything you have in your home.

If you have a lot of expensive items inside your home, you may end up paying more for homeowners insurance than you would otherwise. Common high-cost items include electronics, sporting equipment, and antiques. The homeowners insurance company will generally ask you to list all the items in your home.

Don’t Forget to Ask About Loss of Use Coverage

One issue people face when their home is damaged is the fact that they have to pay for additional housing while their home is being repaired.

Loss of use coverage will provide you with money to cover the expenses associated with living somewhere else while your home is being repaired. This usually happens when the home becomes uninhabitable because of a covered loss and needs extensive repairs.

Liability Protection Can Protect You From Legal and Medical Expenses

When you own property, you sometimes end up being responsible for injuries that occur to other people while they’re on your property.

For example, if someone slips and falls on the ice on your front steps and is injured, they may have grounds to sue you. Liability protection can protect you if someone suffers property damage or bodily injury.

These protections can also protect you from legal expenses if you or someone in your family causes harm to someone else.

You May Need Additional Protection for Your Property

Most people who live in flood-prone areas will need to inquire about additional protections on top of their standard homeowners insurance policy.

The same is true for people who live in areas that are affected by earthquakes. Some natural disasters are covered by standard homeowners insurance, but not all. It’s always smart to ask about additional coverage. This is especially true if you live in an area that experiences severe weather.

Vacancy protection is another add-on that new homeowners should think about purchasing. Although rare, there are certain circumstances in which your home may sit vacant while you own it.

This could happen because your property is under construction, or if you need to move before you sell your home to someone else. Your property may also have to sit vacant if you need to remove pests with chemicals.

Vacancy protection can reimburse you for any vandalism or other damages that can sometimes happen when a property sits vacant for an extended period.

Finding the Right Homeowners Insurance

The tips in the article above will help you figure out what to look for when shopping for homeowners insurance. Be sure to ask about all the policy coverages mentioned in the article.

You may also want to ask about additional coverages to ensure you’re reimbursed for any losses you might incur while living in your home. When you’re ready to speak with a knowledgeable advisor about homeowners insurance, get in touch with the helpful team of professionals at NorthEast Insurance Services.