As you probably know, homeowners insurance is important because it protects you against fire, theft, etc. That is one reason why it is required by your lender for closing. Here's an overview of what it covers:
A standard homeowner’s insurance policy insures the home and the things you keep in it. Homeowners insurance also covers both damage to your property as well as your liability for any injuries and property damage you or members of your family cause to others.
Damage caused by most disasters is covered but there are also many exceptions.
What's NOT Covered?
The most significant exceptions are damage caused by floods, earthquakes and poor maintenance. You must buy separate policies for flood and earthquake coverage.
Valuing Your Home
Before you search for home insurance it obviously is very important to know your home’s value. And, just like everything else you buy, what seems to be the same product can be priced differently by different companies. You can save money by comparison shopping so leave yourself enough time for the research and shopping.
Typically a homeowner’s policy includes coverage for your:
- Home
- Personal belongings
- Liability protection
- Living expenses
Also consider whether the insurance covers:
- Detached structures, such as garages
- Personal belongings – and what percentage
- Landscaping or things outside of the home
- Other living expenses due to a fire, etc.
And, what are the liability limits?