Now that your offer on a home is accepted, the whole process is almost done until the closing day. But that does not mean you have nothing to do before closing. You still have some things to consider before closing. One of the important things that you need to get done in the weeks before you complete the closing is the homeowners insurance.
If you are a first-time homeowner, chances are you already have renters insurance. Homeowners insurance is like renters, but it is more expensive and it has more elements. You will need to protect your property and not just your possessions, and this is why you need to get homeowners insurance. Homeowners insurance gives protection to homeowners from financial losses in the event of theft, storms, fire, natural disasters and all other causes stated in your policy. So you must read the policy carefully to know the details and your rights. Take a second look at your policy and know your rights.
It is best to get homeowners insurance that covers five or six coverage instead of separate policies for specific coverage. You will spend more when you chose to get separate policies. Homeowners insurance includes five coverages.
Dwelling insurance coverage: This covers the physical structure of your home and not any other structures like guest house, fences, detached garage etc. This means you are covered in case of damage to the main house and any attached structures such as an attached garage.
Personal property coverage: This coverage of the homeowners policy ensures the contents of your household items like the items you usually use which are not a permanent part of you home’s structure, such as furniture, television sets, appliances, clothing, utensils and tools.
Liability coverage: This coverage secures you when you are accountable to someone else’s injury or damage. In such incident homeowners insurance will soon give you a minimum of $20,000 as coverage. Policy holders can get an extra premium of one million dollars. This coverage include at the scene emergency aid, bodily injury medical expenses, legal defense fees, loss of income compensation, funeral expenses, bail bonds (the person must be listed on the insured’s policy) and medical services for sickness and/or disease.
Medical payment coverage: This coverage will take care of all your medical expenses if someone gets hurt even in the area of your property. Particular injuries are covered by your medical insurance including your dog biting someone in your property. It also covers policyholders and their family members when in others’ vehicles, or when the insured and their family members are on foot and hit by a car. The costs of coverage are subject to the limits you choose when you purchase your auto insurance policy. Normally, the basic coverage you can get is $500, which can increase up to $5000 by paying added charges.
Loss of use cover: In case your home is damaged due to any reason and become homeless, under this kind of situation your homeowners policy will cover your living expenses.
With all the benefits of having a homeowners insurance policy, you ensure security to your home and your life.
