With all the excitement of buying your first home, it’s easy to forget about related expenses like homeowners insurance. Unless you’re paying cash for your home, you’ll finance it through a lender who will almost certainly require that you purchase homeowners insurance before closing on the property. Some lenders require proof that home buyers have prepaid for one year of homeowners insurance. But don’t worry—an experienced insurance agent will walk you through the process.
The two primary types of homeowners insurance are named peril policies and all risk policies. An all risk policy generally has higher premiums, since it covers any losses that are not specifically mentioned as exclusions. A named peril policy covers losses due to hazards that are specifically listed in the document.
Within these two policy types, there are plenty of options to choose from. In general, homeowners insurance policies offer coverage for property damage and personal liability. Property damage includes damage to the structure of the house and to the possessions inside it. Personal liability coverage applies to situations in which a household member or a hazardous condition of the property injures someone else.
Basic homeowners insurance policies cover damage caused by wind, fire, hail, theft, and lightning. It also covers damage sustained by falling objects on the house, such as a tree. Usually, the policy protects homeowners from losses due to riots or civil unrest, explosions, and vehicles—including aircraft.
A standard homeowners insurance policy won’t offer coverage for damage due to floods, earthquakes, sinkholes, and mudslides. Your insurance agent can help you decide if you need to purchase extra coverage to protect yourself from these threats.
Whether you’re buying your first home or your fifth, you need quality homeowners insurance you can count on. That’s why so many Steamboat Springs, CO residents have turned to State Farm Insurance – Debbie Aragon Insurance . You can call their office at (970) 879-1756 to request a quote today.