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When you embark on the exciting chapter of buying a new home, make sure that one of the first things you do is acquire homeowners insurance. Here are a few details to keep in mind.

Remember that homeowners insurance protects your most valuable asset. If you live in a home, it might be the most valuable asset that you own. This is very common. If you are in need of costly repairs, a home insurance policy can make this possible. A lot can go wrong and if you live in South Florida, the elements can cause disastrous and costly damage. If you live in California, wildfires could do away with your home. If you’re covered, dealing with damage will be a lot less stressful. 

Your lender might require you to buy a policy. Lenders will want to ensure that you have the insurance, especially if you have a mortgage on your home. You would be less likely to pay off your expensive mortgage loan if you are unable to pay for damage because of a lack of insurance.

It’s important to understand the nitty gritty details of what your policy covers. Buyers should research insurance policies and read the fine print in detail. A good education toward your insurance situation will make you an expert in these matters and allow you to handle potential issues like a pro. 

There are many kinds of policies depending on the needs of the households. Deductibles vary as far as your financial situation. You should find a policy that best fits your financial situation and budget. 

Many insurance companies are placing limits on water damage which is the most common cause of loss.   Make sure you ask your agent if your policy has a limited water damage endorsement (typically limited to $10k).  Also, some companies like People’s Trust and Citizens want to force you to use their contractor to perform repairs at their leisure. They do not want to issue you a check for the damage to your property.  

Homeowners insurance is a complex subject and the most educated of us, will be the ones that sleep the best at night.