Are you a first-time home buyer that is getting homeowner's insurance for the first time as well? If so, you may be surprised to learn that there are so many types of coverage available to you. Home insurance is not a one-size-fits-all policy since there are many variations that help you meet the needs of what you're specifically looking to have coverage for. That's why it helps to know about the four kinds of coverage.
The main type of coverage that you'll need to get is dwelling coverage. Be aware that this will cover the home's structure from fires, accidents, and theft. However, there are some natural disasters that are not covered that require separate coverage, such as flooding. This is the most common coverage that your mortgage lender will require since it is protecting the part of the home that they still technically own until you have paid off your mortgage.
Are there any structures on the property other than your home? This includes a garage that is completely detached from the home or a nice shed. If so, you'll need additional structure coverage. They'll likely be safe in the event of a house fire, which is why they are often separated from the primary dwelling.
Loss of Use
If you find yourself without a home while it is being repaired, you are going to be under some financial hardships trying to pay for temporary housing and emergency items. Your loss of use insurance coverage will help pay for all of those expenses while you are temporarily out of a home. This type of coverage is worth having, since you may be out of a home for many months while repairs are being made from a house fire.
Anything that is in the home that you own and can remove is covered under personal property coverage. It does not include your HVAC system but could include appliance that came with the home, such as the refrigerator, washer and dryer, and stove. Coverage for personal property will help you receive new items to replace the ones that are damaged or stolen from your home or pay for the item to be restored.
Need help determining what kind of coverage you need for each of these four areas? Be sure to work with a local insurance agent in your area to walk you through the purchasing process.