Home Insurance Tips for First-Time Home Buyers

Is home insurance a necessity? Yes. A home is one of the most important and most expensive possessions of any individual. Protecting one’s investment in it from fire, theft and other disasters using home insurance coverage is essential.

Additionally, choosing the right home insurance policy is also a must. One needs to know that not every home insurance policy covers the usual assets assumed by many to be covered. Some new homeowners may not know that home owner insurance also covers people residing in the house, such as the homeowner. Others that can be named in the policy are the spouse, a household helper, a guest or a relative living in the house.

The web site insurance.com has developed guidelines to help first-time homeowners choose the best type of insurance. It says that generally there are three types of home insurance policies in terms of what they protect and the extent of their protection. The three kinds of insurance protection offered are the following:

1. Protection of Structures
   The home insurance policy covers the house for damages arising from common disasters such as fire, lightning, theft, adverse weather and smoke. Anything that causes damage to the house or causes property investment loss to the homeowner is covered by the policy, unless the causes are written as exclusions in the policy.
   When choosing the amount of coverage, homeowners should consider the entire value of the house, and not only the balance of the mortgage loan or their ownership interest in the property.
2. Protection of Personal Property
   The home insurance also covers personal properties and family possessions such art objects, jewelry, antiques and valuable furniture. Most often, the homeowner is reimbursed for theft of personal properties whether the items were lost inside or outside the insured home.
3. Compensation for Liability
   The home owner insurance policy also covers medical costs that arise from damage to property and liabilities that result from injuries suffered while inside or outside the property.