Buying a home is one of the most expensive investments you will ever encounter. This is especially true when you live in a populated area, or you know that your neighborhood has risks for flooding or other damages. If you intend to be properly covered for anything, then you must absolutely indulge in a thorough policy.
The homeowner's insurance market really started formulating post 1950 because the insurance industry needed a house or apartment -specific policy to cover the structure, contents, and liability of an individual's home. The policies formed into three generic guidelines: HO-3, HO-2, and HO-1. HO-3 is the standard, as it is the most comprehensive choice. It will protect the home and other structures on your property, as well as some personal items and liabilities. What it excludes is specific damages, such as those from earthquakes or floods. HO-2 and HO-1 are less comprehensive and cheaper, and you'll be left having to pay more overall for things that could not be covered. A large percentage of the home insurance companies you look for will be offering the HO-3.
You must opt for the coverage that makes the most common sense. There's no reason not to invest in the better quality contracts, and you'd be amazed what it covers. Look at the fine print because you'll notice that fire and lightning damage, vehicular damage, hurricanes, hail storms, theft and vandalism are mostly included. You may want to tailor your policy should you need anything more or less than that so that you're paying for what makes most sense based on your location and neighborhood.
Aside from needing an additional separate investment for flood and earthquakes, what you might notice is that what also are not generally covered are neglect, intentional loss, general power failure, and damage caused by civil disruption and war (this is a fairly unlikely occurrence though). Always keep records as to what damage and loss was deemed a result of the insured catastrophes, and the costs of everything.
Basically, make sure that you're not going to be left in serious debt because you cannot personally fund renovations and replacements. Your agent should help direct you to a wise plan that fits your budget and your needs. If you have any questions, you should also be asking them, not saving them until after disaster strikes, just so you know that you are fully prepared when and if it does occur.
The homeowner's insurance market really started formulating post 1950 because the insurance industry needed a house or apartment -specific policy to cover the structure, contents, and liability of an individual's home. The policies formed into three generic guidelines: HO-3, HO-2, and HO-1. HO-3 is the standard, as it is the most comprehensive choice. It will protect the home and other structures on your property, as well as some personal items and liabilities. What it excludes is specific damages, such as those from earthquakes or floods. HO-2 and HO-1 are less comprehensive and cheaper, and you'll be left having to pay more overall for things that could not be covered. A large percentage of the home insurance companies you look for will be offering the HO-3.
You must opt for the coverage that makes the most common sense. There's no reason not to invest in the better quality contracts, and you'd be amazed what it covers. Look at the fine print because you'll notice that fire and lightning damage, vehicular damage, hurricanes, hail storms, theft and vandalism are mostly included. You may want to tailor your policy should you need anything more or less than that so that you're paying for what makes most sense based on your location and neighborhood.
Aside from needing an additional separate investment for flood and earthquakes, what you might notice is that what also are not generally covered are neglect, intentional loss, general power failure, and damage caused by civil disruption and war (this is a fairly unlikely occurrence though). Always keep records as to what damage and loss was deemed a result of the insured catastrophes, and the costs of everything.
Basically, make sure that you're not going to be left in serious debt because you cannot personally fund renovations and replacements. Your agent should help direct you to a wise plan that fits your budget and your needs. If you have any questions, you should also be asking them, not saving them until after disaster strikes, just so you know that you are fully prepared when and if it does occur.