Insuring Your First Home

Insuring Your First Home

So, you’re purchasing your first home? Wow, congratulations! Becoming a homeowner is a huge accomplishment and big transition. You’ve obviously worked hard to get to this point, so you’re going to want to protect your new home. That’s where insurance comes in!

Homeowners insurance will provide financial protection for your home and your personal belongings. When you purchase a homeowners insurance policy, you enter into an agreement with the insurance company (also known as your insurance carrier) that so long as you uphold your end of the agreement (paying the bill on time, maintaining the property in a safe condition, etc.) that they will provide coverage.

Coverages for a homeowner’s insurance policy may help pay to repair or repair your home and belongings is they are damaged by certain perils like a fire or theft.

Homeowner’s insurance typically helps cover:

  • Your Dwelling: helps cover the structure of the home in which you live (e.g. the house’s foundation, walls, and roof)
  • Your Personal Property: may help pay to repair or replace your belongings if they are damaged or destroyed by a covered risk.
  • Other Structures on Your Property: structures separate from your home, like a detached garage, tool shed, or fence.
  • Liability for injuries or damage to someone else’s property


Homeowner’s insurance doesn’t cover:

  • Earthquakes and sinkholes
  • Flood damages
  • Damages resulting from neglect and a failure to properly maintain the property
  • General wear and tear such as:
    • A roof that needs to be replaced
  • Poorly made items or those with a hidden defect
  • Mechanical breakdown
  • Damages (like food spoilage) resulting from a power outage


Homeowners insurance provides minimal coverage for:

  • Valuable property such as firearms, furs, watches, silverware, and gold.
    • A standard policy provides $1,000 for theft of jewelry.
  • Replacement cost
    • Most policies use an actual cash-value basis to determine the settlement amount of any lost or damaged items, which takes into consideration depreciation.
    • A replacement cost endorsement can be added to a policy, which will pay claims based on the cost to replace certain lost items without factoring in depreciation.
  • Higher liability and medical payments
    • Liability for the medical expenses of third parties and legal bills for defense against claims can be astronomical. Increasing your liability policy limits can protect your financial future.
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