Home Insurance Considerations for First-time Home Buyers

Buying your first home is a major milestone. But alongside the excitement of closing on your sale and moving in comes significant responsibilities, including securing essential financial protection. Home insurance plays a key role in safeguarding your home and finances, and understanding relevant details, including applicable requirements, is essential for first-time buyers.

What Is Home Insurance?

Home insurance is a policy that can help protect your home and belongings from unexpected events such as fire, theft, or severe weather. It may also offer liability protection if someone is injured on your property. While not legally required in most states, it is often a condition of mortgage approval and can provide peace of mind by reducing the financial burden of repairs or replacements.

What Coverages Are Typically Included?

A standard home insurance policy may include several forms of financial protection, including the following:

• Dwelling coverage can help pay to repair or rebuild the physical structure of your home if damaged by a covered peril.
• Other structures coverage may financially protect you from damage to detached buildings on your lot, including garages, sheds and fences.
• Personal property coverage can recoup losses involving your belongings, such as furniture, electronics and clothing.
• Liability coverage can insure you against incidents where you’re at fault for accidentally causing other parties’ bodily injuries or property damage.
• Loss-of-use coverage may reimburse additional living expenses, such as rent and transportation costs, if your home becomes temporarily uninhabitable.
• Medical payments coverage may offer limited financial aid for minor medical expenses if a guest is injured in your home, regardless of fault.

Coverage limits and exclusions vary by policy, so it’s important to review your options carefully with a knowledgeable insurance professional.

When Am I Required to Have Coverage?

If you’re financing your home with a mortgage, your lender will almost certainly require proof of insurance before closing. This can help make sure their investment is protected in case of damage. Some lenders may also require specific types of coverage, such as flood insurance, depending on the location of the property.

We’re Here to Help

If you’re purchasing your first home in or around Sulphur Springs, TX, the team at Giles Insurance Agency is here to help you secure suitable insurance. Contact us today to get started.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.