Home Insurance Tips for Homeowners

After buying a new home it’s time for you to make sure you have homeowners insurance coverage. Here are some types of insurance that may affect your needs with your recent move.

Homeowners Insurance
This insurance coverage is important if you have a mortgage. You may want to make sure that the amount of coverage that you have will adequately protect you for all possible losses. The policies set coverage limits for specific items (e.g., jewelry), but if you need to increase your coverage, you can always purchase a separate endorsement or a floater. Also find out whether you can obtain "replacement cost" under this policy on your personal property and whether you are covered for earthquake damage.

Flood Insurance
You may want to look into purchasing flood insurance, whether you live on a riverbank, near the ocean or even in a low-lying area. Most companies that sell homeowners insurance also sell flood insurance. So, contact your own insurance company for more information.

Auto Insurance
There is connection between buying a home and auto insurance. Because in an auto accident, your home could be subject to liability claims if the claims exceed the liability limits of your auto insurance policy. In order to protect your home, you should re-evaluate the existing liability limits on your auto insurance policy to make sure that you have adequate coverage.

If you think you need even more coverage, you may purchase a separate umbrella liability policy, which would pay for damages that exceed the coverage limits on your auto and/or homeowners insurance policy.

Disability insurance
A disability insurance policy will pay you a monthly benefit to replace a portion of your income, if you were unable to work due to an accident or illness. Many employers provide disability insurance for their employees. If you are not offered disability insurance by your employer or if you are self-employed, you can purchase an individual disability policy.

Life insurance
In case, if you were to die before your mortgage was paid off, life insurance can provide your family with the funds to pay off their debts, as well as replace a portion of your income. Consult an insurance professional to help you assess your family's life insurance needs.