|Buying a new house is a part of fulfilling the American dream. There are so many things to consider when you are looking into buying a new house. Once you have completed the arduous task of house hunting and you finally picked out that dream house. Now the real work begins, you will most likely get caught up in the ebb and flow of negotiations to buy that dream house, finalizing your financing and wrapping up all the outstanding details for your Homeowners insurance policy.|
As you are getting your ducks in a row, be sure you have thoroughly researched and asked your agent about any questions regarding your homeowner’s insurance policy. There are 2 major components; the first component provides coverage to the property or house. The second component covers the liability of a homeowner’s insurance policy, what this does is cover things like personal liability if someone gets hurt on the property perhaps as the result of an accident. A few basic parameters to consider is what is the cost for this policy and be sure to understand the procedure when you need to make a claim on your homeowner’s insurance policy. The next step when buying a homeowners insurance policy is to be sure that you have the right homeowners insurance coverage for that policy.
Homeowners’ insurance coverageThere are a few types of homeowners’ insurance coverage that almost all homebuyers have in common. For instance there are 6 different types of homeowners coverage, some states or companies may designate or categorize the types of coverage as HO-A or HO-1. These coverages are stated as Coverage A-D or (HO-1—H-5) then there are additional coverages and exemptions.
The first type of homeowners’ insurance coverage is Coverage A, which generally covers only the dwelling itself against basic occurrences. This Coverage A or HO-1 as it is sometimes called, generally has a clause in the coverage that if the dwelling is insured for a specific amount then if something like a fire happens to the home, the house is eligible to be replaced if needed. With this Coverage A, there are 11 types of damage that are covered in this policy. Since this is one of the most basic types of coverage it is usually coupled with other types of coverage to satisfy all the homeowners insurance coverage.