Why do you need home insurance? Whether you’re buying an already existing home or having one built, you need to protect your investment with coverage. However, every homeowners policy comes with a myriad of coverage options. How much do you really need? What should your policy cover?
Protecting Your Investment
Like most of us, your home will be one of the biggest investments you will make in your lifetime. Money aside, this will also be you and your family’s home, a safe place that will carry memories and precious belongings as well as a roof over your heads. You will need to protect your investment with an insurance policy. Otherwise, what could be a small inconvenience with a policy could be a disastrous financial situation without one.
The exact amount of coverage your home will carry will depend on a number of different factors. However, in most cases a policy carries the following:
- Liability (should someone become injured in your house)
- Repair costs if the home is damaged or becomes unlivable due to disaster
- Coverage for the structure and belongings within
- Money for expenses should you need to vacate your home
You will need to talk to your insurance agent about what premiums are in your budget and what coverage will be needed for you and your family. We are always happy to address any questions or concerns.
Will I Need Additional Coverage?
Besides a homeowners policy, do you need any additional coverage? There are three different policies you may consider in addition to your home insurance:
- Floater: If you have a collection or items of high value you may consider floater coverage to protect them.
- Umbrella: If you exceed your liability coverage you could be in a financially precarious spot. An umbrella policy provides extra liability protection should you exceed what’s in your homeowners insurance.
- Flood: Protection for floods is not included in your homeowners insurance. We recommend purchasing this even if you live in an area not prone to flooding.