Congratulations on the purchase of your new home. Being a homeowner is exciting and comes with its own set of responsibilities. Ideally, you won’t have to worry about damage to your new home any time soon, but it never hurts to be prepared for unexpected losses. This is where homeowners insurance comes in. Homeowners insurance helps pay for unexpected home losses such as fire, theft, flooding, hail damage, and other types of losses.
Types of coverage homeowners insurance provides
Dwelling Coverage
This coverage offers protection for your property in the case of damage due to a fire, wind, lightning, hail, or other losses that are covered. It protects the physical structure of your home.
Personal Property Coverage
Personal property coverage covers the personal property you keep in your home, such as clothing, electronics, furniture, and other personal items. Homeowners insurance will cover your personal belongings in case of a covered loss and pay to repair or replace them. You can purchase either actual cash value or replacement cost coverage. Replacement cost homeowners insurance pays the amount it will take to replace your home and personal belongings at today’s market value. In contrast, an actual cash value policy pays for the current value of your home and belongings.
Liability Insurance
This insurance is part of homeowners insurance, and it can help pay for any medical bills or legal expenses in case someone is injured while at your home. This coverage pays for damages to a third party if you are found responsible for the injury another party sustained while on your property.
If you experience a loss, you must file a homeowners insurance claim. Here are some steps to take when filing a home insurance claim.
- Inspect the damage: Ensure everyone is safe, then look for damages to your rental property.
- File a police report if needed: If you’ve been the victim of a burglary or break-in, you should file a police report as soon as possible for any damages or items stolen.
- Document the damage: Use a video recorder or camera to take videos or photos of the damage and write down any details about items damaged.
- Report the damage: Contact your insurance company or insurance agent to report the claim.
- Get ready for the adjuster: Wait to hear from the insurance company when the adjuster will come to review the damages. Then, wait to make any repairs or move anything until the adjuster arrives.
We wish you the best of luck in your new home and hope you will never need to file a homeowner insurance claim, but if you do, we hope you will find the above information helpful.
