What is Home Insurance?
Purchasing a home comes with a lot of responsibilities, one of which is to make sure you buy home insurance. What is home insurance, you ask? In short, it is a form of protection for your property. But before you go out and buy some, lets take a closer look at just what it is and why you need it.
Understanding Home Insurance
When purchasing a home, the need to also buy home insurance is rather prevalent. But not just because your mortgage company may require it; instead, its a way to make sure that you and your property are protected in the event that a tragedy beyond your control occurs.
Home insurance is also known in the insurance world as a package policy. This means that not only is your property and your belongings protected, but also, you are not financially liable for any injuries caused to others in your house. It even covers your household pets.
What Does Home Insurance Not Cover?
While buying home insurance after purchasing a home can protect your property if it is damaged, there are some exceptions to what is covered in your policy. For instance, if there is an earthquake that damages your property, or a flood sweeps through and causes damage to your basement, your coverage will not protect your property. So if you live on a fault, or your house sits at the bottom of a hill where you know flooding may occur, you will need to purchase separate policies to make sure your property is financially protected.
Also, its good to remember that home insurance doesnt cover basic maintenance needs. So if your outer deck needs repairs as a result of everyday wear and tear, it will be your responsibility to pay out of pocket.
So now that you know a little bit about it, its time to start shopping for a home insurance policy. It doesnt hurt to do so even before purchasing a home to have an idea of just how much you can afford in overall monthly payments.