Protecting your dream: the importance of homeowner insurance
Buying a home is a big investment. And unlike your car, which depreciates as soon as you drive it off the lot, the investment you make when you buy a home should appreciate over time. In addition to home ell maintaince, it’s one of the more important things you can do to protect your investment.
Here’s what you should know about homeowners’ insurance:
- If you’re a first-time or recent home buyer, your mortgage lender wants your home adequately insured to protect their financial investment. So get this done quickly. Because if you don’t provide your lender with proof of insurance within a given time frame , they may sign you up and charge you for a more expensive policy than one you could buy yourself..
- Home insurance should cover the cost to rebuild your home when damaged or destroyed by a fire or weather event. Home insurance will also include replacement of stolen items if your house is broken into – a good reason to have a written or photo inventory of your possessions in case you ever have to file a claim. Expensive items such as artwork, antiques and furs usually need additional coverage called a ‘rider’.
- The liability portion of home insurance covers injuries incurred by others on your property. You can work to keep sidewalks ice-free and dogs on a leash, but accidents do happen. Insurance protects you, up to the limits of your policy, against financial loss due to the injured party’s medical expenses and even a possible lawsuit.
Learn more about insurance types and terms on the National Association of Insurance Commissioners (NAIC) website for help choosing the right policy and coverage levels. A good insurance agent or broker can also help you determine what coverage provides you with the best protection from financial loss.