Home insurance is necessary for your protection, but it's not something you should take lightly. If you're a new homeowner, this video featuring a home insurance company will show you what to expect with home insurance.
Many new homeowners navigate unfamiliar circumstances, such as selecting real estate agents, picking the ideal home, and getting homeowners insurance.
All that can be exciting but intimidating at the same time. According to Federal Housing Finance Agency, home prices increased by nearly 20% from 2021 to 2022. That means you'll want to safeguard what is likely the most significant financial investment of your life.
If you're buying a single-family house for the first time, you'll likely need a basic homeowners insurance policy, known as an HO-3. It safeguards your home and belongings against various dangers, including personal property, liability, and medical coverage. It also covers the structure of your home and shields you from any legal action.
It's a good idea to talk to your agent about the coverage gaps and the potential consequences of each exclusion before buying your first home insurance policy. Familiarizing yourself with the specifics of your policy will allow you to decide whether to buy any optional riders.