When calculating the cost of your first home, don’t forget to factor in home insurance. This insurance, which is required in order to purchase a home, provides financial coverage in case your home is damaged.
When insuring your first home, keep these tips in mind:
- Get full coverage. Don’t attempt to save money now by skimping on coverage. Your insurance should be enough to cover the cost of having to rebuild your home. Ideally, you should get extended replacement coverage and an inflation guarantee.
- Get liability insurance. This insurance pays for legal and medical costs that you might be faced with if someone is injured on your property. It also covers you in case someone in your family causes damage to your neighbor’s property.
- Cover your valuables. These won’t be included on your homeowners insurance policy, so you’ll be out of luck if they’re damaged or stolen. Purchase additional coverage to make sure that you’ll have enough money to replace jewelry, antiques and other valuables in your home.