There are a lot of important first time home owner tips to keep in mind when you are buying a new home. You may also be tempted to purchase new furniture before you purchase anything else. However, furniture should not be the first thing that you buy. You should get insurance coverage for your home before you buy furniture.
Homeowners insurance coverage is a type of insurance that protects your home and possessions against damages. Your insurance coverage can also include liability coverage. This means that if an accident occurred on your property, then your homeowner’s insurance coverage will pay for it.
A basic homeowners insurance policy will cover disasters, such as fires, tornadoes, lightening, and vandalism. If you are no longer able to live in your home due to a disaster, then your homeowner’s insurance policy can pay for you to stay in another place temporarily. Many lenders also require that people get homeowners insurance.
Furthermore, your homeowner’s insurance can also cover your home if it gets burglarized. Your new home is probably the place where you will feel the safest. However, home break-ins are extremely common. In fact, it is estimated that 25 percent of homes in the United States are burglarized.
It is important to include everything when you are selecting your coverage amount. This is one of the key first time home owner tips to keep in mind. You should also find out whether the insurance company will replace the property based on the actual cash value or replacement value.
The actual cash value is also known as the market value. It is calculated by subtracting the depreciation amount from the replacement cost. The replacement cost is the total amount that will have to be paid to replace the asset.