Things To Know Before Buying Homeowner's Insurance
For those who are buying their first home, the process of buying home insurance can be confusing. This is especially true when you've never had to deal with homeowners insurance before, as you may not be sure what to consider when you're shopping for that first policy. Here are a couple of key notes about homeowners insurance coverage that you need to consider before you secure a policy.
You May Need Item-Specific Coverage
When you get your homeowners insurance, one of the things that your insurance agent will ask you about is the value of your personal belongings. Part of your homeowner's insurance includes personal property coverage. In the event of a loss that's covered by your insurance, your personal property coverage will pay to replace any belongings that are damaged or lost.
However, personal property coverage has its limitations. If you own something that is high-value, including jewelry pieces, artwork, musical instruments, or collectibles, you'll want to have those items insured separately on your homeowner's insurance policy. Personal article riders do just that. You can set a specific value for each of those items covered under a personal article rider. That way, you don't have to worry about your overall personal property coverage falling short of the replacement value for those specialty items.
Your Pets May Be A Factor
Your homeowner's insurance company, and any company quoting you a policy, will ask about the pets in your household. There will also typically be specific policy language related to the animals that you can and cannot keep on your property and still retain your homeowner's insurance coverage.
Most home insurance companies will prohibit certain aggressive breeds of dogs as well as other high-risk animals. You will need to tell the insurance company about any pets you own, and you may be provided with a list of breeds that you cannot own in the future without risking policy cancellation. Make sure you familiarize yourself with these regulations so that you can remain compliant.
You Should Ask About Coverage For Additional Structures
You might think that your homeowner's insurance automatically covers everything on your property. This isn't actually the case. Anything that isn't attached to your home is excluded from your primary dwelling coverage. That means that, if you have a detached garage, shed or other structure, losses won't be covered to these buildings.
You should ensure that you clarify your outbuilding coverage with your insurance company. Some companies will provide you with coverage automatically up to about ten percent of your policy's full dwelling coverage. However, other companies will exclude those buildings unless you add an additional coverage line for them specifically. For more information, contact a company that offers home insurance.