If you are a first-time homebuyer, you probably have not dealt with homeowners insurance in the past. It may even seem unnecessary, on top of your other moving expenses, but after investing so much in a house to call your own, can you afford not to protect it from life’s unexpected challenges? To answer this question and others you might have, the guide below explains why this coverage is so valuable.

What to Know About Homeowners Insurance

Is Home Insurance Required?

Unlike auto insurance, home insurance is not required by state law. However, while you have an outstanding mortgage amount, the lender can—and often will—require you to buy at least enough coverage to protect their financial interest. However, the low cost of coverage and the financial benefits make such a purchase a smart idea whether you have a loan balance or not.

What Does Home Insurance Cover?

It protects the house and its contents against losses caused by fire, storms, falling objects, vandalism, theft, and a variety of other hazards. It also offers personal liability protection, which pays for medical treatments and repairs if you or a household member—including a pet—should accidentally injure someone else or damage their property. Finally, it covers any legal expenses that might occur because of the incident.

What Does Homeowners Insurance Not Cover?

Most basic home insurance policies exclude coverage for damages caused by floods, earthquakes, mudslides, sinkholes, and other types of earth movement. To guard against these hazards, you must buy separate coverage for an additional amount. It also does not cover intentional acts. For instance, although it will pay for your neighbor's broken picture window if your child accidentally knocks a baseball through it, it will not pay out if they purposefully break the window with a bat.

To discuss homeowners insurance options with a friendly, helpful agent, get in touch with Sweeney Insurance Agency in Kodiak, AK. They offer invaluable guidance to businesses and individuals throughout the island, and they also carry auto, health, life, business, and boat insurance. Visit their website to fill out an online quote request or call (907) 486-3101 to have an agent walk you through the process.