Home Insurance

Purchasing a home can be an exciting event that can also come with new responsibilities and questions, especially for first-time buyers. One primary challenge is having a sound financial plan to pay repair or rebuilding costs if the house becomes damaged. 

A homeowners insurance policy with the right type and amount of coverage can help protect a buyer's investment and financial future. This benefit is why lenders may require proof of a policy before the final approval of a mortgage. Remember, homeowners insurance is not the same as mortgage insurance.

Below is a generalization of what types of perils are typically covered or not covered in a homeowners insurance policy. For specifics please refer to your policy and/ or consult your local insurance agent.

There are typically 16 named perils, which include these more-common perils:

• Fire and/or smoke

• Lightning 

• Windstorms and/ or Hail

• Accidental discharge

• Theft (limits of certain items)

• Weight from ice and snow

• Vandalism

• Explosions

• Freezing pipes

• Falling objects

Despite the fact that home insurance covers a lot, it does not cover everything. In fact, some common exclusions are:

• Earthquakes (able to purchase separately)

• Floods (able to purchase from FEMA)

• Sinkholes (able to purchase separately)

• Sewer backup (able to purchase separately)

• Government intervention

• Wear and tear

• Damage due to lack of maintenance

• Rodent or pest infestation

• Rust, mold and corrosion

• Damage from pets