flooded living room with couch under water

Homeowners Insurance: How to Protect Your Home

It’s a widely accepted fact that insurance is a great way to prepare yourself for potential disasters in the future. That’s especially true when working to protect your home and your finances.

But did you know that in order to get a mortgage, you’ll likely be required to have home insurance set up?

All major banks and lenders see the value of insuring a home, and we want to make sure you do too. That’s why we’ve created this guide to help you get a basic understanding of homeowner insurance, the benefits of having a policy in place, and how to get covered.

Coverage Details

Homeowners insurance sounds fairly straightforward. It’s coverage in case something catastrophic happens to your home so you can make any necessary repairs to keep it a livable space. But, in fact, there is much more to it than that.

The coverage offered by homeowner insurance policies varies widely. It’s important to make sure that you get the coverage you need for your specific needs. The policy you choose and the extent of the coverage is up to you.

Every insurance broker should be able to give you a breakdown of each of their policy options. It’s helpful to come up with a set list of what will and won’t be necessary for your new home. That way, you can compare it to your options to find the perfect fit.

Types of Homeowners Insurance

Once you’ve determined the basic things you’d like to have covered by your homeowner’s insurance, it’s time to inspect the different types of insurance you can purchase. Just a few minutes into your research, you’ll see there are so many options to choose from.

Many policies are broken down by the type of property you own. There is specific insurance for large homes and a different policy would be used for a townhome, for example.

Another major difference between types is how the amount is determined. You’ll either have the current value of your property (home and belongings) be the total, which means the number will go down as the items age and depreciate. Or it could be the purchase value, which means the total will stay the same regardless of depreciation.

Finding the Right Broker

The differences between options to insure a home can seem very subtle so it wouldn’t matter which option you went with, but the wrong choice can have lasting effects on your living situation. In the home insurance shopping experience, this is a great time to work with a professional.

An insurance broker will have all the knowledge and expertise to give you solid advice and find you the perfect amount of coverage.

The key to success is finding a broker who can look at your specific property and belongings to determine which policy would best protect you in a disaster. Ask around to the people you trust for recommendations so you know you’re in excellent hands!

Overall Cost of Insurance

There’s no way to give an accurate estimate for the cost of a homeowners insurance policy with none of the specifics of the home or anything else covered. The price you pay depends on those factors. Though there are calculators that can give you an idea with some of your basic information.

As you determine what you can afford and what you can’t in terms of insurance, it’s important to consider what it would cost you to recover from a crisis without it.

Most homeowners choose to have their insurance payments worked into their monthly mortgage bill. This allows them to know they’re always covered without worrying about missing a payment! But there are also options to pay for the entire year up front as well. Work with your broker to find the best solution for your budget.

Additional Coverage Options

After you have your basic homeowners insurance in place, it’s a good idea to look at some additional coverage options. Many things like floods or earthquakes aren’t covered by a traditional policy and have to be added on.

If you live in an area that’s prone to a specific type of natural disaster, it’s best to make sure you’re covered for that type of disaster. There would be nothing worse than having your house flooded in a hurricane, only to realize it’s not covered and you’re responsible for the entire flood repair bill.

This is another instance where working with a professional broker comes in handy. They’ll make sure all your boxes are checked and you’ll feel more confident.

Keep Details of Policy on Hand

Typically, the kinds of events that cause damage where insurance is needed aren’t scheduled. They come out of nowhere and cause immense amounts of stress. The last thing you’ll want to do in situations like that is to spend hours searching for your homeowner’s insurance policy information.

Take the time to choose a safe place to keep all the information together and accessible. This will help you get the repair process moving much quicker and will ease a lot of your frustration.

Protect Your Home With Homeowners Insurance

Getting a home is a major milestone for anyone. It brings with it a sense of accomplishment, as well as some added stress. There are so many unknowns when owning a home. A problem can turn into a disaster that costs you thousands of dollars.

Instead of leaving yourself vulnerable to a crisis, protect your home and your bank account by adding homeowners insurance. The low monthly cost will pay off tenfold if you find yourself with large amounts of damage. You’ll rest easy knowing you’ll be able to make the repairs necessary if the time comes.

If you’re interested in learning more about homeowners insurance and seeing what your options are, contact us today!