If you’re moving into your first home, buying insurance is one of the first things you should do to ensure you are protected in case of emergency. In many cases, the bank that has approved your mortgage will require you to have homeowners insurance before you can move in. But knowing exactly how much coverage to get can be a hard decision to make. Read on to learn more about how much insurance your Central Florida home needs.
What is Homeowners Insurance Meant to Cover?
Homeowners insurance is meant to cover several things, including:
- Repairing any damage to the structure of the home
- Replacing any broken or damaged items in the home
- Reimbursing you for the cost of living elsewhere while your home is damaged
- Paying for the cost of any damage done to others on your property
When you calculate how much coverage you should get, consider each of these costs individually. Then, combine these estimates to come up with the total amount of insurance coverage you need.
How Much Will It Cost to Repair any Structural Damage?
The cost of repairing the home should be based on current market rates for construction, required materials and related expenses. If building codes or requirements have changed since your home was originally built, any new construction will have to meet the updated codes and may cost more than the original cost of building the home.
Assessing The Cost of Replacing Damaged Items
The value of replacement items should be based on the amount you originally paid for the item and should be based on the inventory of home items you created upon moving in. If you have receipts for these items, keep them with your master inventory list in case the insurance company requires proof when you make a claim.
Protecting Yourself From Liability to Visitors and Friends
Most homeowner’s insurance policies provide up to $100, 000 in coverage for damage done to other people on your property. This can include, but is not limited to:
- Slip and falls
- Dog Bites
- Structural damage resulting in harm, such as a roof collapse which causes an injury to your guest
While the amount provided by your homeowner’s insurance may be enough coverage for a straightforward injury, it may not be enough to cover the cost of defending yourself in a lawsuit. While no one wants to consider the possibility of being sued by a friend or family member, the reality is this situation happens to many Americans every year. The person who gets injured may feel entitled to compensation for missed work, pain and suffering, or mental anguish caused by the accident. If the insurance company refuses to pay these costs, pursuing a lawsuit against you might be the only course of action left for the injured person. If this is something you would like to be protected against, you can purchase additional coverage to help you in these situations.
If you’re getting ready to purchase your first home, the Core Group can help guide you through the process. Click here to get started.