What You Should Know About Homeowners Insurance

a two-floor toy house with blue walls and gray roof is behind a rolled-up homeowners insurance certificate

Homeowner insurance might feel like just another bill that you are forced to pay, but you will be glad you did it if and when disaster strikes. Homeowners’ insurance is there to protect the most valued assets that you possess. You put a lot of time and effort into buying a house. You searched real estate websites searching for houses for sale, you found the piece of real estate that you wanted and went through the process of purchasing it. You need homeowners insurance, it can be a bit confusing at times, but as you read on you will gain the knowledge needed to put your worries to rest.

1. Knowing the value of your home.

It’s very important to understand how much insurance that you are going to need. You must take the time to find out the precise value of your home, so hiring an assessment company will be your best course of action. Finding out your home’s true value is not something that you can do by yourself. Make sure you hire a professional to get it done right the first time.

2. Not all damage is covered by your policy.

If the real estate that you own is uninsured, unforeseen damage could prove to be extremely expensive. Even if it is insured, there are a lot of events that aren’t covered by your homeowner’s insurance, such as earthquakes, floods, and other natural disasters. You can add earthquake insurance to your current policy, but you will have to purchase flood insurance completely separately from your standard home insurance policy.

on top of a house insurance form is a calculator and a pen, a small brown toy house is on the upper left side and behind the form, placed on the upper right corner, is two credit cards

3. Rebuilding a home is extremely costly.

When you look at homes for sale on real estate websites you will notice that the houses cost a certain amount, maybe $200,000 but rebuilding that house might cost $340,000. If this is the case, then you will need $340,000 in homeowner’s insurance. This takes into account the cost of rebuilding your home, the material price, and the cost of labor. Rebuilding a house is not cheap.

4. Take stock of your possessions and their value.

Homeowners insurance will cover the cost of rebuilding your home as well as your possessions.This is not something to guesstimate, it is likely that you have tens of thousands of dollars worth of items in your household, many of which are difficult and expensive to replace.

So make a list of all of your items, and save receipts on expensive possessions so you will have proof. Your homeowner’s insurance is not going to just take your word for it, and you will not get the same amount of value for your possessions without it.

a clipboard, hammer and measuring tape are on top of a stool which are placed in front of a damaged wall

5. Keep your property well maintained.

Your homeowner’s insurance company expects you to make sure that you properly maintain your property so that it is not hazardous or liable for damage. If they discover that any damage occurred due to your negligence, they can deny the insurance claim. Proper maintenance now will help you avoid a headache later.

It might seem like another bill to pay, but the price of keeping your home secured and having something to fall back on when unexpected calamity comes is certainly a price worth paying.