Unlike auto coverage, home insurance is not required by law in most cases. However, it is still an important risk-management tool if you have real estate to protect. If you are a first-time homebuyer, below is some information you should know about homeowners’ coverage.

3 Tips for Beginner Home Insurance Buyers

1. Your Lender Probably Requires It

Even though coverage is not mandatory by Alabama law, you are likely required to buy insurance if you financed your home through a bank or mortgage. Home insurance protects their financial interest in cases of destruction by fire or storm. Be sure to purchase enough insurance to cover the replacement cost, not just the outstanding loan amount. Otherwise, a catastrophic loss will leave you with no way to recover any equity you’ve built up in the home.

2. It Covers Personal Liability

In addition to protecting the structure and contents of your home against fire, storm, vandalism, and theft, it also offers personal liability coverage. This pays for the repairs and medical or legal costs should you accidentally injure someone or damage their property while they’re in your home. It also covers slip-and-fall accidents and other such injuries that occur on the premises.

3. Select for Value, Not for Price

Try not to purchase the least expensive policy. Instead, choose the best value. For instance, consider the policy limits, look at what's excluded from coverage, and examine deductible amounts. If you can, consider a policy that covers more of your losses, has fewer exclusions, and requires you to contribute less to a claim before the insurer starts paying.

For a friendly, experienced insurance agency that can assist you in designing a home insurance policy, contact Goggans Insurance in Scottsboro, AL. They have served businesses and residents in and around Jackson County for more than 30 years. They can also assist you with auto, farm, business, boat, RV, and motorcycle insurance. Visit their website or call (256) 574-3440 to request a free, no-obligation home insurance quote.