3 Types Of Coverages You Probably Need When Buying Home Insurance

When you need to buy home insurance and do not know exactly what types of coverages to get, you might choose the wrong things, or you might not choose enough coverage. Insurance is a confusing product to people who have never purchased it before, and if you are buying your first house, you will want to make sure you choose the following three types of coverages for your policy.

Structural Coverage

The main reason to purchase homeowner's insurance is for the coverage it offers structurally. Structural coverage protects your actual home from damage, and it offers compensation when your home is destroyed by a storm or fire or robbed by a criminal.

The important part to understand when buying home insurance is how much structural coverage to get, and the best way to determine this amount is by looking at the market value of the home. You should have coverage that at least is equal to this; however, it is often better to purchase enough structural coverage to pay to replace your house if you happened to lose the entire thing to a fire a storm and had to rebuild it.

Personal Possession Coverage

The second form of coverage you must have when you own a house is coverage for your personal possessions. This coverage will compensate you if you lose things in your home from a storm or peril. It is important to have enough personal possession coverage, too, but you do not have to go through your home and add up the value of every item. Instead, you could base the amount on a percentage of your home value. If your home is worth $200,000, you should have at least 50% to 75% of this value in coverage for personal possessions. This means you would need at least $100,000 to $150,000 of coverage for this category.

Riders or Endorsements

The last thing is called adding riders or endorsements, and this is something you should do if you own things that would not be covered in the personal possession coverage. Basically, adding a rider adds coverage over one specific item, such as a diamond necklace you own, and you can add as many riders as necessary.

Additionally, a homeowner's insurance policy will include liability coverage, too, which protects you from injuries and accidents that take place on your property to your guests. If you are ready to get a quote for insurance, contact homeowner's insurance companies like Oliveira Insurance Agency today.  

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