Homeowner’s insurance is a critical component in any property owner’s life. In order to obtain a mortgage buyers are required to take out a homeowner’s insurance plan on their new home. This helps cover unintentional damage such as fire, storm, vandalism and theft.

Your lender will require you to get at least a minimum coverage policy. However just as with car insurance it may be best to look into purchasing a more robust policy to cover your new home. While you may never need to file a serious claim, it will help protect you and your family should disaster occur.

What Does Homeowner’s Insurance Cover?
In addition to the home itself home insurance will typically protect items such as home furnishings, outbuildings (such as sheds), garages, and most structures on your property. The one caveat being that these structures such as a detached garage cannot be used for nonresidential business purposes.

Pay close attention to the coverage offered. Many basic policies do not cover valuables such as jewelry, high end furnishing or art over a certain dollar amount.

Finding the Right Plan & Company
There are many companies that sell home insurance plans. You may even be able to bundle a home insurance plan with your car insurance provider.

When searching out an insurance company be aware that they will do a background check on the home to find out if there have been previous claims on the home such as water damage, as this can lead to mold further down the line causing very expensive repair bills. This may be enough to deny your request to insure the home.

Consider setting your deductible to be somewhat high so that you won’t be tempted to make claims for smaller items. Using your insurance multiple times a year can lead to an increase in your rates.

However, it’s a wise idea to make sure that whatever you set your deductible to that you have enough cash on hand to cover it should the need arise.

Now that you have found the perfect insurance for your home, sit back, relax and enjoy your new investment, you earned it.