MONDAY, MAY 24, 2021
Buying a new home can be both exciting and terrifying, with many aspects to consider, such as neighborhood, the house itself and insurance. Insurance is possibly the most confusing, but understanding the basics of it is a big step in choosing the right insurance.
Before you shop for insurance, check your credit rating. Your credit rating can raise or lower your interest rate depending on if it’s good or bad. In general, you want to have a 750 or higher for very good credit. You can work to improve your credit through paying bills and investing in a credit card. 
What Does Home Insurance Cover?
In general, a basic homeowner’s insurance policy covers:
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Dwelling: Dwelling coverage helps pay for repairs or a rebuild when your home is damaged by one or more listed perils, including fire, hail and tornadoes.
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General liability: General liability steps in when bodily injury or property damage occurs to another person while on your property.
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Pet liability: Pet liability steps in if your pet causes bodily injury or property damage to another person.
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Other structures protection: Dwelling coverage only pays for repairs on your home and its attached structures. Structures such as detached garages and fences are covered beneath other structures protection.
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Additional living expenses (ALE): ALE helps pay for living expenses if you must live somewhere else while your house is under repair.
You may want to also consider a personal property endorsement/floater. This covers expensive or rare items, like jewelry, not covered under homeowners’ insurance. It can help pay for items lost or damaged due to a peril.
What Does Home Insurance Not Cover?
Homeowners insurance typically doesn’t cover flooding. Purchase a separate flood policy if your area is prone to a lot of rain or floods to protect your home from possible damages. Earthquake damage is also usually excluded.
Understanding Home Insurance Premiums
Home insurance premiums are affected by many factors, including:
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Living close to a coastline. Weather damage is more likely closer to the coastline, which usually costs more to insure. You may also have to purchase a hurricane or windstorm deductible.
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Moving into an older home. Older homes can cost a lot to insure since repairs are often costly and they can be seen as less safe if they haven’t been maintained.
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General condition and construction. A home with a roof that isn’t fire or hail resistant may cost more. Construction also matters. If the foundation is weak, you’ll have to bring your home up to code and it may cost more to insure.
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Swimming pools. Swimming pools typically require more liability insurance since it’s an additional risk of injury.
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NOTICE: This blog and website are made available by the publisher for educational and informational purposes only.
It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional
in your state. By using this blog site you understand that there is no broker client relationship between
you and the blog and website publisher.
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