If you are thinking about buying a new home, then chances are you’ve heard about ‘homeowners insurance’. However, you might not understand what it is or what it does, or even why you need it.

If you are slightly confused by homeowners insurance, we have created a blog to tell you everything you need to know, so that you can make sure you understand it properly and make the right decisions before you move into your new home.

What is homeowners insurance?

Put simply, homeowners insurance is a type of insurance that protects your property and its contents. There are three main types of homeowners insurance: building insurance contents insurance and insurance that combines both of these.

In some cases, homeowners insurance is required. For example, many mortgage lenders will only give you a mortgage if you have bought homeowners insurance. Even if it is not a requirement for you to buy this type of insurance, it is essential if you want to make sure that your house and your belongings are protected from accidents and crime.

What does homeowners insurance cover?

There are two main types of home insurance: buildings insurance and contents insurance. Here is what they both offer:

• Buildings insurance: covers the cost of repairing any damage that might happen to the structure of your property. This includes things like walls and windows as well as toilets and bathrooms. Generally, building insurance will also cover loss or damage caused by fire, explosions, smoke, natural disasters, vandalism, and many other things that would cause damage to your home that wasn’t your fault. It may also cover the cost of any power outages that may occur in your home. If you are looking for a reliable utility provider like Constellation Energy, you will want to inquire about the protocol for what to do when there is a power outage

• Contents insurance: covers the cost of replacing your belongings in your home if they are damaged, destroyed, or stolen. Some examples of what is included in contents insurance are- sofas, electronics, kitchenware, clothes, and jewelry. Put simply, contents insurance will cover any items in your house that you would take with you if you were to move home.

Because both types of insurance cover every aspect of your home, it is recommended that you get both. That way, everything is protected and you don’t have to worry about paying for anything if your property gets damaged or you lose items in it.

How to choose your policy and coverage

 When it comes to picking a homeowners insurance policy, it can be difficult to know what to go for, as there are so many options available now. When buying contents insurance, make sure that the coverage equals the replacement cost of everything in your house. If you can’t afford to pay for insurance that covers absolutely every single belonging, then at least get the insurance that covers the most valuable assets in your home or anything that you would not be able to afford to re-purchase if it got destroyed or stolen.

 When it comes to building insurance, your coverage should be equal to the amount that it would cost to rebuild your house from scratch. If you don’t know how to work this out, you can either use an online tool to help figure out how much it would cost or get a professional opinion.

 If you can spare the money, there are a few more types of homeowners insurance you should consider getting:

• Liability coverage: this covers you if anyone is injured on your property (for example, someone falls down their stairs and chooses to sue you for this). Hopefully, this won’t happen, but if you can afford it, you should consider getting this coverage.

• Additional living expenses coverage: this covers the cost of any expenses you might face if your property is destroyed, such as hotel costs and food costs.

 When it comes to insurance, your home is one of the most important and expensive items you need to insure, so make sure you pick the right coverage before you move in. Remember, whether moving to Boise or St George home insurance
is one of the best investments you could ever make.