In life there are things that we want to do and others that we must do. Flexing our “responsibility muscles” and buying home insurance falls into the latter category. But there is good news: although it may not be sexy, purchasing coverage for your home is one of the smartest decisions you can make to protect your greatest asset.
Most mortgage lenders require homeowner insurance, but even if you’ve paid off your home, it’s wise to carry a policy—better safe than sorry, as they say. Let’s dig in and learn the basics about this crucial coverage.
What’s in a Homeowners Insurance Policy?
Home insurance can be customized to match your situation, but the following are typical inclusions in most policies:
- Liability protection: Liability protection covers you for the unexpected. Accidents happen, and unfortunately they sometimes result in lawsuits. Whether a guest breaks a leg falling down your stairs or sprains an ankle tripping in a hole in your yard, your insurance company steps in to handle fees and costs associated with a settlement or judgement.
- Dwelling coverage: This coverage relates to the physical structure of a home—walls, roof, foundation, siding, etc. In the case of a fire, hailstorm, burst pipe, or any other covered unforeseen event, an insurer will assess the damage and estimate the costs to repair your home. Other structures, such as a garage or barn, are typically included in this coverage.
- Personal property: Think of personal property as your “stuff”: furniture, clothing, jewelry, appliances, books—maybe even spoiled food due to a power outage. Whether items are damaged, destroyed, or stolen, this coverage offers replacement or cash value in the event of a loss.
Coverage Matters
As with any big purchase, when buying home insurance it’s imperative to read the fine print. Damage to homes caused by flooding or earthquakes is typically not covered by a standard policy. And although an insurer will pay to cover court fees, repair a hail-beaten roof, or replace a stolen TV, the amount it pays is capped—so be sure to know all limits and deductibles associated with the policy you choose and ensure they are sufficient.
Shop Around
Rates for home insurance differ wildly. No two policies or companies that offer them are the same. When doing your research, consider an insurer’s rating and how long its been in business. Is it a reputable company? How easily does it handle claims? As for the coverage itself, be sure to make an apples-to-apples comparison when choosing the best policy to meet your needs and budget.
Home insurance offers priceless peace of mind to new and seasoned homeowners alike. Find an agent today and make sure your beautiful Berkeley Home is protected.
Berkeley Homes has been serving the Denver community since 1985. The company’s comprehensive limited warranty offers homeowners an extra safeguard in protecting their high-quality homes. Tour one of their communities today andhttp://dev.liveberkeley.com see the Berkeley Homes difference.
