Protecting your new home with insurance is a must. Standard homeowner’s insurance usually includes hazard coverage for any damages that may affect the value of a house, in addition to personal liability and theft coverage.
There are many different types of insurance and the cost and amount of coverage for each depends on the details of your specific policy. Although you are not legally required to have homeowners’ insurance, most mortgage lenders stipulate that you do or else they will refuse to provide you with a mortgage loan.
A standard policy will suffice in most instances. It protects against several natural disasters and catastrophic events. However, it will not guard against earthquakes, floods, war, and nuclear accidents. The policy can be expanded to include these disasters as well as coverage for such things as workers’ compensation. In fact, the lender may require that you purchase flood or earthquake insurance if the house is in a flood zone or a region susceptible to earthquakes. You also can increase coverage beyond the depreciated value of personal property such as televisions and furniture by purchasing a replacement-cost endorsement.
You should consult with an insurance professional to find out what type of coverage can be provided to meet all of your needs.
Source: CENTURY 21® Website- www.century21.com