3 Questions About Homeowners Insurance For New Homeowners

New to owning a home and need home insurance? You will likely have these 3 questions before you get a policy to cover your new home.

Is Home Insurance Required?

You may have been told that you need to have home insurance, but maybe you are wondering if it is actually required by law to have it. The truth is that you are not required to have home insurance to own a home, but your mortgage lender likely has requirements in order to secure your mortgage. That's due to the lender technically owning the home before you have paid it off, so they have an interest in the home being protected if a disaster were to happen. This is why your insurance provider needs to submit documentation to your mortgage lender to prove that you have purchased home insurance. Once the home is paid off, you are welcome to take the risk of not having home insurance, but it may not be the best idea due to all the benefits you can receive. 

Are All Disasters Covered With Home Insurance?

Home insurance will cover certain types of incidents as part of a basic home insurance policy. However, there are additional policies that are needed for some disasters. The most common ones that require additional protection are floods and earthquakes. Thankfully, you'll know if your home is at risk for these problems based on where you live, and it may not even be something that you have to think about. Your lender will let you know if you live in a high-risk area that requires additional coverage for these disasters. 

Do You Need Flood Insurance For Water Damage? 

Many new homeowners confuse flood insurance with coverage for water damage since they'll typically say that their basement flooded when water gets into it. Flood insurance is designed to protect you when water comes into your home from the outside. If water comes from inside your home due to a burst pipe, that is typically covered under a standard home insurance policy.

However, there is a different type of coverage for sewer backups. This is when water comes into your home from a sewer line, which often involves wastewater with bacteria in it. You'll need sewer backup coverage if you want to be protected from this type of damage, which is generally an additional policy that must be purchased.

Reach out to a local insurance company like the Ronald H. Krupa Insurance Agency if you have questions about home insurance. 

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