Is Basic Home Insurance Enough?

Is Basic Home Insurance Enough?

As soon as you buy your home, you will need to look for homeowner insurance. It may be tempting to go for the most basic policy, especially if you are just starting out as a homeowner. But you need to check if that will be enough for you. You want to make sure that your home is covered for anything that may happen to it, as you don’t want to lose it to potential unforeseen acts such as fire, flood or lightning. On top of that, it will contain all your possessions that would cost a lot to replace.

What Is Classed as Basic Home Insurance?

Basic home insurance will give you a pay-out for the most straightforward claims. It is much better to have this than nothing at all. You will be able to replace a lot of your items and have the damage fixed in many cases. It will cover you if you are sued as a result of someone being injured on your premises. You may find that you do not have a choice when it comes to taking out this insurance. If you don’t, you may struggle to get a mortgage.

Types of Home Insurance Policies

You will have an option when it comes to selecting a home insurance policy in many states.

• An HO-1 policy used to be considered enough, as there is protection from a lot of natural events such as hurricanes and storms as well as civil unrest and explosions. You will need to see if your state offers it.

• An HO-2 policy gives you additional coverage. As well as what may be considered Acts of God, you will also receive payment as a result of vandalism or theft. You will also be able to claim for roof damage and burst pipes.

• An HO-3 policy gives much more comprehensive coverage, although you will need to check what is not covered.

Additional Coverage Options

It may seem that the listed home insurance policies will be enough, but in some of these, you could lose out on compensation for your belongings. Sometimes payouts will only cover contents for 75% of the assessed value of your property. You may need to take out extra insurance for larger-priced items, such as computers and jewelry. Pieces of art may also need to be covered separately.

You will have a wide range of home insurance policies to choose from. Be sure to take out a policy that covers all of your major assets. Lastly have one of our agents confirm that you aren’t under insured. Did you know that About 64 percent of homeowners don’t have enough insurance, according to CoreLogic’s 2020 report. Our helpful insurance agents can help you choose the right policy for you and your home.