You’ve found the home of your dreams, had your offer accepted, put down your deposit, and figured out all the closing costs. Now all you need to do is sign the contract and you’re ready to go, right? Wrong. There’s something that you need to do before you move in that isn’t part of the homebuying process, and that’s purchasing insurance. Home insurance is an important part of home ownership that is often forgotten. But whether you buy a house or condo, it’s important to understand how home insurance can protect you against financial loss and liability. In this article, we’ll show you why you absolutely need to arrange for insurance when buying your first home.
Protects Your Property and Belongings
Your home is likely your biggest investment, so you want to protect it! If you encounter a fire, burglary, or endure property damage caused by a natural disaster, it’s important that you have insurance. Otherwise, any damage that you need to repair or any replacement of belongings will come out of your own pocket. Home insurance coverage can give you the financial protection you need in the event that your home or belongings are ever damaged.
Saves You From Liability
Did you know that if someone falls and hurts themselves on your property, you could be liable to pay their medical expenses and loss of income? Homeowner’s insurance will pay for the injured party’s medical expenses and protect you against any legal issues if they arise.
Provides Additional Condo Coverage
Even if the condo association does have their own insurance, it’s a common misunderstanding that you are fully covered under theirs as well. Their insurance will cover common amenities and personal injury; however, it does not include your belongings and betterments, or upgrades or your suite.
Covers Accidental Damage You Cause To Someone Else’s Property
Imagine that you’re running errands and forget that you left the tap running and head out for the day. You come home and find that your suite is flooded and the unit below you is also flooded. Without insurance, you would be responsible for the damages, not only to your property and the one below you but also to the adjacent hallways and walls. However, if you had a condo insurance policy, it would kick in to protect you in the event of a major accident like this.
Home insurance may not be a legal requirement; however, most financial institutions do make it a condition of the mortgage. And many condo corporations also make it a requirement to have insurance. When you’re a first-time homebuyer, it’s important to get insurance that will protect your home, belongings and family in the case of an unforeseen circumstance. You should also know that no two policies are the same which is why you should always consult with an insurance broker before choosing a particular insurance instrument. Our team at MLS will help guide you through the insurance framework and find a policy that best suits your lifestyle and needs. To learn more contact us today!