When imagining our dream home we think about what the view will look like from the kitchen window, and how it will feel to rise from our beds and greet the morning. We think about having some control of our lives, picking building materials, and customizing every inch of our new home. What we tend not to think about is insurance, especially when buying our first home. But home insurance doesn’t need to be scary or complex. Here we break down the basics for insuring your new home.
First, it’s important to understand what homeowner’s insurance actually does. Not only does this insurance cover damage to your home, but also it protects your property and provides liability coverage for anyone injured on your property. If you have a mortgage on your home, you may be required to keep homeowner’s insurance in order to satisfy your lender. Many policies also cover any other structures on your property, as well as living expenses should your home be rendered unusable for a period of time.
Next, it’s time to understand a very important term in the world of home insurance: peril. When you insure your home, it is covered in the event of damages arising from certain types of peril. Most policies cover the basics like fire, falling trees and theft, though they may cover your home and your contents at different rates. Most plans, however, do not cover flood or earthquake damages. Depending on where you live, these limitations could be a very big deal. Knowing the details of your policy is essential to getting the coverage you need.
Before you build, or even buy your land, know if you are building in a flood plain or other dangerous area that might affect the cost of your insurance. Factoring in these prices on the front end of your homebuilding venture will save you time and money in the long run. Don’t be surprised when it’s too late. Do your homework and choose an insurance plan that’s right for you. Once you have your spot, United Built Homes can do everything you need to ensure that your new home is safe and sturdy.
A Consumer's Guide to Home Insurance. (2010). Retrieved February 12, 2016, from http://www.naic.org/documents/consumer_guide_home.pdf
National Association of Insurance Commissioners