When buying your first home, getting insurance may be required by law or by the mortgage lender. Basic homeowners insurance will cover damage, both natural and human-caused. Some natural disasters, however, won’t be part of a standard policy. In addition, separate policies may be needed to cover sheds, garages and valuable possessions. There are different levels of coverage. Some factor in depreciation, and some go so far as to include costs to repair or rebuild. You can also buy liability coverage or additional living expenses coverage. A number of factors go into determining policy costs, including neighborhood crime rates and past claim history. Before buying, be sure to obtain competitive quotes and speak to agents about their policies.
- Getting insurance for your home is not a ‘nice to have’, but a must have. In many countries or states, you are required by law to have a homeowners insurance policy.
- If you get any kind of insurance already, definitely check in with your current insurer – as an existing client you could get some good offers or discount.
- Freestanding structures like sheds, gazebos, and garages will need additional or separate riders to be covered under your homeowners insurance policy.
“Because it’s something everyone must have, there are a lot of insurance providers out there, making the choice overwhelming.”