Purchasing a new home is likely one of the biggest milestones that many people accomplish. Purchasing a home requires a significant portion of your lifetime earnings, time and energy. When homes are purchased, it is common that the owners intend to live there for an extended period, if not a lifetime. Because of the dedication required to own a home, it should come as no surprise that home insurance is considered a necessity. With all the potential risks involved, having this safeguard can help ensure that this asset is protected.
Protections Under Insurance
When getting all your coverage squared away, it is important to understand what is typically covered by these types of policies. In many plans you can typically expect damage from the following scenarios to be covered:
- Crime and theft
- Personal liability
- The structure itself
Conversely, it may come as a surprise to many that some natural phenomena or “acts of God” are unlikely to be covered by a standard plan. Floods and earthquakes, for example, may need to be added on or covered in a different plan altogether. Since coverage with different agencies will vary, be sure to discuss what is included in your home insurance and what supplemental plans you may need to get to protect your investment.