Types of Insurance Coverage to Make Sure You Have for Your New Home
type of insurance coverage
Buying a home is one of the most exciting times in life. And while you’ve likely taken care to select your mortgage lender, real estate agent, and inspector – other important decisions need to be made too.
One of these decisions is what type of insurance coverage will work best for you when you buy your new home.
We’re here to give you some insight into what types are available and how they can help protect your financial future.
Property Insurance
Property insurance is a general term that covers your property against damage or loss from accidents, natural disasters, and theft, among other things.
The cost of this type of coverage varies by the value of your home as well as the number of items you want to be covered – but it’s an essential part of making sure you’re protected.
Liability Insurance
Liability insurance is a type of coverage that will protect you against claims from other people’s injuries or property damage.
It would cover both the cost of defending yourself in court and any damages awarded by the judge, regardless of whether it was intentional or accidental.
This type of policy often comes with policies like homeowners, auto, boat, and motorcycle.
Flood Insurance
A type of property insurance, flood coverage, is a must if you’re in an area that could be vulnerable to flooding.
The cost can vary depending on the dates and location- but it’s important to talk with your agent about this option before buying a home just in case there are any risks for flooding in the future.
In addition to a general home insurance policy, it’s also wise to insure any valuable items that could be damaged by flooding.
Umbrella Insurance
An umbrella insurance policy is an additional layer of protection in case you need it.
This type is often used by people who have assets that could be taken away if they were sued, such as doctors or business owners.
It’s important to note this doesn’t replace liability coverage and only covers the difference between your liability policy and your assets.
Health Insurance
Health insurance is a type of coverage that you’ll need if your employer doesn’t offer it.
It can be purchased on the open market or as part of an individual plan from the government and will help cover any expenses for treatment related to illness or injury.
Having this in place is critical so that major costs don’t fall on you or your family in the event of a medical emergency.
The information listed above covers the basics of what you need to know about insurance in general.
But it’s important that when purchasing a home, you take time to talk with an agent who has experience in this area and can help make sure your housing needs are met.
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Category: Insurance
