brier April 19, 2013 No Comments

When buying a home one is required to purchase homeowners insurance.  Most of the time we all go for what is most affordable because we just went through the large expense of buying a home.  While this makes sense on the surface, in the long run you could be costing yourself a lot more than you are saving by just settling for a basic homeowners plan.  It is important to research your area and know what things could occur that you mat not be protected against.

What does basic homeowners insurance cover?  This is somewhat of a loaded question and varies in different areas and with different companies.  A basic plan will generally pay for repairs caused by damage.  Most basic policies protect you against fire.  If because of the fire there was a flood, any damage resulting from that will not be covered unless you have added flood insurance to your policy.  Only certain areas require flood insurance so make sure you know to add that if you want to be covered in the event of flooding in your home.

It pays to read over your policy with a fine tooth comb.  There are so many details and so many areas that you want to be fully aware of what is covered and what is not before making your decision.  Most basic policies should cover the cost of living somewhere else while your home undergoes any repairs caused by massive damage; make sure your plan includes this.  Imagine the expense of staying somewhere for a few months if it was not included in your policy?  A lot of basic plans only cover the structure of the home, the do not cover electronic devices, furniture and other possessions.  If you have a great amount of valuables and stand to lose a lot in the event of extreme damage you will want to take out additional insurance policies to ensure everything is properly protected. 

Lastly, most basic plans have coverage incase of injury.  If someone is injured on your property your policy will cover their medical expenses and also protect you personally if they sue.  Remember though, with basic it’s going to be a minimal amount, so if you have contractors doing work on your home make sure that they are self-insured and will not sue you personally in the event of accidental injury.  If they are not and you choose to hire them anyway be aware of what your coverage is to make sure you are properly protected.

This is just some basic advice to make the process easier on you and to let you know what you should be aware of up front.  There is always more to know in matters like this so keep doing research if you still have more questions.  Our homes, living areas and belongings vary so our insurance policy should match accordingly; there is no one plan fits all when it comes to homeowners insurance.