Buying Home Insurance? Know What You Need To Protect Your Investment

A home is going to likely be the biggest purchase that you ever make in your lifetime. That is why it is crucial that you protect your investment with home insurance. However, home insurance is not a one-size-fits-all type of policy. Much like with auto insurance, there are various types of coverage that you can elect to purchase at an additional cost. Here are some types of coverage that you have to pick from.

Dwelling Coverage

Anyone that has a mortgage is going to need dwelling coverage. This is because it covers everything related to the structure of your home, such as the foundation, roof, bricks, siding, and any structures attached directly to the home. This includes a garage that is attached to your home, an enclosed porch, or a wood deck.

You'll generally want enough coverage so that you can completely rebuild your home in a worst-case scenario. Your mortgage lender will even require this as part of getting a mortgage since they want to ensure that the property is protected.

Personal Property Coverage

You'll want coverage for the things inside your home, which is where personal property coverage comes into play. Personal property coverage is typically based on a percentage of your dwelling coverage and is designed to cover all of the things that can be removed from your home. This includes furniture and some kitchen appliances but not things like your HVAC system that are covered under dwelling coverage.

Liability Coverage

Your home is something that you build equity in over time, which makes it a very valuable asset. However, that means that you are at risk of losing that asset if you are sued by another person. Liability coverage helps protect your home from incidents where someone could sue you and potentially cause you to lose your home. This is typically limited to injuries that happen on your property, such as a slip and fall accident where someone ends up with major medical bills that need to be paid.

Loss Of Use Coverage

Ever wonder what happens if you do need to use insurance for a big incident that requires repair? You'll need to find a temporary place to live while those repairs happen. Loss of use coverage is going to pay for a hotel, rental home, or some other type of temporary living expense that you need when you can't live in your home. 

Contact a company like Del Toro Insurance Hialeah Gardens to learn more.