Insuring Your New Home

Real estate is a valuable asset. As such it must be protected from the risks of loss and damage. Insuring real estate is an absolute must. If your home is financed then you will likely have no choice in the matter. A bank will insist on an insurance policy to protect the property form financial risk. Even if you own the property, mortgage free, insurance is still a must.

Many mortgage lenders will often have their own insurance policies to sell along with the mortgage, or may have a preferred insurance company they refer their clients to. There is no obligation to use their insurance services, or the services of the insurer they recommend. Using the services of an insurance broker is highly recommended. A broker will shop your insurance needs around to multiple insurers to find the best policy, at the lowest premiums, to suit your needs.

Online insurance brokers like InsureMe.com are a great service for finding the very best insurance policy. Their services are free as they get paid a commission for bringing a new customer to the insurance company who's policy you accept. A win-win-win deal for all 3 parties.

Home Owner Insurance Coverage

Homeowners insurance policies are different from once insurance company to another, and the specific policy you buy. Any insurance policy you choose should cover at least these main points:

Loss to Real Property - this covers loss or damage due to events such as fire, weather, vandalism and other events covered under the policy. The policy will specify the types of events it covers. Some things like flooding and earthquakes may, or may not, not be covered depending on where you live and how prone the region is to these events. If you live on a flood plain or near an active fault line an insurance company may not be willing to cover those events, else you may have to pay a very heavy premium in order to be covered.

Losses to Personal Property - personal items within the home, such as furnishings, artwork, jewelry and other valuables, clothing and other personal items may be covered from theft or damage due to perilous events such as those that cover the losses to the real property. Most policies will set a limit on the value of a claim against personal property. Expensive items may need to be covered under a separate policy, or a separate schedule to the existing policy.

Loss Due to Theft - personal property and items located outside the home may be covered from theft. This may include items stolen from inside a vehicle, or bicycles stolen from on or off the property. Pay attention to the types of items, and circumstances of a theft that the policy will cover and the dollar value limits the policy will cover.

Personal Liability - liability insurance will cover losses or injury to other people, or their personal property, while they are on your property. Liabilities for bodily injuries can be very high. Be sure to set a liability coverage that can cover at least your entire net worth.

Get the Homeowners Coverage You Need

There is too much at risk to be skimping on your homeowners insurance policy. Determine exactly what you want to be covered for and devise a policy with your insurance company that will cover that. Also decide on what risks you are willing to carry yourself and have them excluded from the policy.

Your insurance policy will need to remain in effect for the life of your mortgage. Be sure to keep you policy up to date and your premiums paid, else the bank may revoke your financing.

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