Home Insurance 101: Know your coverages!

Being a first time homeowner is a pretty big deal. Could you imagine buying the home of your dreams just so that a natural disaster can swipe up your home and the property inside it? A lot of first time buyers are not in the known about their coverages on their home insurance. Finding ways to save money when you buy your first home becomes a huge priority, especially when you are trying to find the best coverage, which is why it is important to know the components of home insurance… and we are here to help.

When it comes to Home Insurance, it is easy to get confused with all the coverages and what each covers. We have put together a few details in the simplest way so that you understand exactly what each coverage covers. Let’s start off by talking about Section I: Property Coverages. We have different coverages under this section.

·         Coverage A, for example, is your Dwelling Coverage (this is the actual house). This coverage protects your home against certain things such as fire, wind, hail. The amount of dwelling you have on your insurance is very important since it affects your other coverages, so before you bind a policy, be sure to ask your agent about your Dwelling coverage limits!

·         Coverage B covers Other Structures. These Other structures are defined as private non-attached structures such as a guest house, sheds, or fences.

·         Coverage C would be your Personal Property and Exclusions, everything within your home that would be blown away by that storm. These items include things such as furniture, electronics, or tools! Yes, your insurance covers items within your home too!

·         Coverage D is called “Loss of Use” which reimburses fair rental value of the property. This coverage covers your home in a situation where it becomes uninhabitable… and while it is being fixed, this covers the expenses that you spend away from your home.

·         Section II of a Homeowners policy covers the liability part of the Insurance. This includes coverages E and F.

–          Coverage E (Liability) protects you from financial loss due to claims made by others against you.

–          Coverage F covers your medical expenses. The basic limits of this coverage is $1000.

Now that you know a little bit about your coverages, you can call us and get a free quote for your home! Remember you do NOT have to purchase the insurance with your home mortgagee loaner. We can find you the best limits for the lowest price, remember sometimes the cheapest coverage is not the best, but do not be shy to ask us any questions. We are here to help!

Patricia Toirac