Buying your first house is a major milestone and a solid investment in your future. Since it’s a major purchase that will likely contain all of your possessions, you will need adequate homeowners insurance coverage to protect it. Use this guide to better understand the details of this insurance and how it will offer you peace of mind.

A First-Time Home Buyer’s Guide to Homeowners Insurance

What is homeowners insurance?

This kind of insurance policy provides coverage for your house. In the event the house, any detached structures, or personal possessions are damaged, destroyed, or burglarized, the policy will help to replace what was stolen or repair or rebuild the property.

What does homeowners insurance cover?

Most home insurance policies will cover property damage and personal property loss. They also provide personal liability coverage that will protect you and family members in the event that you are found responsible for an accident resulting in an injury or property damage. Many policies will also have a section about added living expenses, which will help pay for alternative living arrangements in the event your home becomes uninhabitable.

What is covered and excluded?

A standard policy extends to certain hazards. The most common perils covered include fire and smoke, lightning, windstorms, hail, explosions, theft and vandalism, falling objects, snow and ice, and water damage caused by broken pipes and water heaters.

In most instances, flood and earthquake damage is not covered, and you’ll need extra coverage if you live in a high-risk area. Any damage that occurs as a result of negligence or lack of maintenance will likely be denied for coverage. Personal liability protection also does not extend to aggressive acts against visitors or neighbors.

What are deductibles and limits?

A deductible is the amount you’ll pay out-of-pocket for an insurance claim before your provider covers the remaining costs for property damage or loss. A deductible is not required for liability claims.

When deciding on a deductible, the size of your policy will determine how low or high the deductible is. Always make sure that the amount can be covered in the event of an emergency. 

The policy will also have a set limit. To make sure you have enough coverage, set a limit that will cover the cost of rebuilding your home from the ground up. 

For quality homeowners insurance that fully meets your needs, turn to Pearson & Barnes Insurance. This owner-operated insurance agency offers multiple lines of coverage at competitive prices to residents throughout Somerset, KY, and the surrounding areas. Their team of agents has over 25 years of combined industry experience and will help to tailor a plan to meet your life goals. Call (606) 679-1450 to set up an appointment, and visit them online to learn more about their products.