What should new homebuyers know about homeowners insurance?

If you're a new homebuyer, homeowners' insurance is a crucial part of protecting your investment. Here are some key things you should know:

If you’re financing your home with a mortgage, your lender will likely require you to have homeowners insurance.

Dwelling Coverage: Protects the structure of your home from risks like fire, windstorms, and vandalism.
Personal Property: Covers belongings like furniture, clothing, and electronics in case of theft or damage.
Liability Protection: Helps if someone is injured on your property or if you accidentally damage someone else's property.
Additional Living Expenses (ALE): Covers temporary housing costs if your home becomes unlivable due to a covered event.

Standard policies don’t cover floods or earthquakes—you may need separate policies for those.
Maintenance issues (like mold or pest infestations) aren’t covered.

Replacement Cost: Pays for repairs or replacement of damaged items at today’s prices.
Actual Cash Value: Accounts for depreciation, meaning you’ll get less for older items.

INSURANCE FOR EVERYON