Protecting the investment you made in your house is not only the smart thing to do; it is the right thing to do. Your house is a major investment and for most people it is the biggest investment they will ever make.
There are a variety of house insurance policies on the market today and not all policies fit all houses. There are varying levels of protection for your house a variety of costs involved with each level of protection. It is wise to work with a reputable house insurance specialist and it is beyond wise to educate you and become acquainted with the essence of house insurance policies.
When you buy a house, your lender will require a certain level of house insurance be put in place as a condition of getting a mortgage. If you are selling a house and buying a new house, it may be a matter of establishing a policy for the new house, then eventually cancelling the policy on the old house. If this is a first time house, a good place to start looking for house insurance is with your current insurance agent, if you have one. Most insurance companies offer insurance packages for vehicles and house, and often at a discount. If you do not have an insurance agent, you will have to look around for house insurance.
A word of home buyer’s advice is to check around for house insurance plans while you are in the planning stages for house hunting. Typically, there is not a lot of time between making an offer and closing the deal when buying a house and the little time available will be spent packing and getting ready to move. Most insurance companies and agents will be happy to give you a ball park figure for house insurance based on the amount you have to spend on the house. That will give you an idea of what house insurance costs will be and will get the house insurance ball rolling.
A good house insurance policy will cover things like fire, theft, vandalism, weather related occurrences such as lightening strikes, windstorm, hail and hurricane damage, tornado damage, as well as plumbing and electrical system malfunctions. House insurance plans often cover liability issues such as someone getting hurt while on your property. House insurance typically does not cover property damage from the use, operation or maintenance of air craft, water craft or motor vehicles and damage or liability due to business pursuits such as running a small business on your residential premises.
A basic rule of thumb is to purchase enough house insurance to cover the replacement cost of the house. It will be necessary to revisit the replacement cost every few years to make sure the current insured value is keeping up with the cost of inflation to cover the materials necessary to replace a house. If you have your house appraised, ask the appraiser for a replacement cost as well. The appraiser will establish a market cost of the house, but you will find the market price and the replacement cost to be two very different values.