Homeowners Insurance Tips for the First-Time Home Buyer

You have found the right house, negotiated the best price, and are on track to finalize the purchase and move into your first home. Finally, you are on the road to the American dream and financial independence. The purchase of your first home will likely be one of the most important investments you make in your life. Before choosing what color to paint the bedroom, how to arrange the furniture, or where to plant the rose bushes, one of the most important decisions you must make is choosing the right homeowners insurance coverage to protect your investment. Below is a breakdown of the significant factors you must consider when making this important decision. What Types of Homeowners Policies are Available? • Broad coverage for your home and personal property – this type of policy includes a list of losses that are covered by the policy. It covers the most common types of losses but it does not cover everything. • Broad coverage for your personal property and all-risk coverage for your home – while your personal property is only covered for the most common types of losses, this type of policy includes comprehensive coverage for your home. • All-risk coverage for your home and personal property – all-risk coverage for both your personal property and your home. How Much Coverage Do You Need? There are two ways an insurance provider can value your home: actual cash value and replacement cost. Insuring your home for the actual cash value may be the less expensive route, but doing so only insures your investment up to the current market value of your...