Do I Need Homeowners Insurance, and When Should I Buy It?

For first-time homebuyers, the process can be intimidating. You go to see so many different homes, which have a vast cornucopia of unexpected problems. From leaky roofs to collapsing floors to ancient HVACs, you’ll have to sort through a lot of unsatisfactory properties.

Once you’ve found the home that’s right for you and your family is when the real work begins. You might wonder: Should I buy homeowners insurance? You’re probably dreaming of paint colors and where the couch will go, but these are far less important than securing adequate coverage for your home.

Do I need homeowners insurance?

Yes. There isn’t a law requiring you to have homeowners insurance, but in order to close on the property, you will need to secure coverage for your new home. It’s a smart idea to research different insurance policy options and see which levels of coverage are best for you. You’ll also need to make sure that the coverage meets your lender’s requirements.

Lenders won’t fund a mortgage or a home equity line of credit without the home having proper insurance. You should ensure that the lender finds the policy you’ve purchased to be adequate before you go to closing. Home insurance protects the investment the lender is making in the event that a catastrophe results in the home needing to be repaired or replaced.

What homeowners insurance type do I need?

Typically, insurance policies cover the following:

  • The house itself: Insurance will fund repair or replacement of the home in the event of a disaster, whether it’s a fire, a storm, a tornado or another event. This policy may also cover damages to other structures on the property like detached garages and sheds.
  • Your personal property: The homeowners insurance policy should cover the replacement of any damaged possessions, from the furniture to entertainment centers.
  • Additional living expenses: If you need to stay at a hotel while the home is being repaired or rebuilt, your insurance policy should cover this.
  • Legal costs: This is a bit outside the other aspects of the policy. If, for example, someone slips and falls on your property, your homeowners insurance policy should cover any legal expenses.

How much homeowners insurance should I have?

The amount of homeowners insurance you need is dependent on the value of your home and your possessions. Discuss with your agent about the recommended amount that will cover the home’s structure and how much it would cost to rebuild. Then take an inventory of your personal possessions, which usually falls at 50 to 70 percent of the insurance amount on the home.

When you need homeowners insurance, turn to a local firm you can trust: Harvey Sarles Insurance Agency. We have a wide network of policy options behind us and will find the most affordable solution that will meet all your insurance needs. Whether you need home insurance, auto insurance, farm insurance and more, we’re here to help. Contact us today and speak with one of our helpful representatives.

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