A house is likely the largest and most important purchase most of us will ever make. Considering how much time effort and money is invested into buying the perfect home, deciding how to protect it is a critical decision.

The Basics

All mortgage lenders require buyers to maintain a standard home insurance policy. It protects against many of the most likely scenarios that can damage a home, such as fires, lightning strikes, or vandalism. It also provides coverage in the event someone burglarizes the home, up to an agreed-upon dollar amount.

Most home insurance policies will provide liability coverage in case a visitor is injured at your home. And many include coverage for windstorm damage, but that could vary depending on where you live. Water damage from a leaking pipe will likely be covered, but recovering from a flood might require specialty insurance.

Natural Disaster Insurance

If your home is located in an area where it is at high-risk for flooding, your mortgage lender will require flood insurance from the National Flood Insurance Program. If you don’t live in a zone where it is mandated, you can still purchase a policy for added protection.

Similarly, insurance for other natural disasters may be worth considering. Residents in coastal areas where hurricanes are common might be required to buy a separate windstorm policy if it’s not included in broader coverage. Earthquake coverage can also be a useful addition to a policy in some regions.

Added Protection

In addition to the factors outside your home that will determine the coverage you need, it’s important to think about what’s inside the home. If you have valuable artwork, jewelry or expensive equipment and collectibles, consider increasing the coverage, or adding a rider covering specific items. In the event of loss, you can be sure the full value is insured.

And remember, home insurance will not cover repairs or regular maintenance on the home. If you’re interested in the added peace of mind that comes with protecting against a broken appliance or malfunctioning air conditioner, you’ll need to explore a home warranty policy.

As always, an Open Mortgage specialist is ready to guide you through the first steps of buying a home. Contact me to get started.


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