Insurance is probably the least exciting part of buying a home, but it’s one of the most important. Buying the right amount of coverage is essential to protecting your home and your assets, and understanding the most common claims on homeowner policies can help you determine where you need that extra protection.
Fires can have dire consequences. Insure your house and personal belongings at replacement cost rather than actual cash value. Premiums are higher, but, if you consider you may lose everything, it’s well worth the extra money.
It’s hard to imagine Fido or Fluffy biting someone. But if they clamp down on a visitor or neighbor, you too may feel the pain. As a pet owner, you’re liable for your animal’s actions, and if someone is bitten and needs medical attention, you’ll have to pay for it. Ensure you have sufficient liability coverage.
Ruptured pipes, clogged drains, leaky roofs or a faucet you forgot to turn off all cause water damage. If it’s serious, the main structural supports of your house can be compromised. Standard homeowner policies do NOT insure against flood, so make sure you purchase supplemental insurance.
Wind and hail
No matter where you live, you’re susceptible to wind and hail: Coastal states suffer through hurricanes; the plains have tornadoes; and blizzards affect the north. The exterior of your house can suffer damage in serious weather conditions, so make sure your coverage limits and deductible are prepared for high-cost repairs.