Joe Costantino | Weymouth Real Estate, Abington Real Estate, Rockland Real Estate


You are required to get homeowners insurance when you purchase a home. You probably are so excited about buying a home that you neglect to learn the ins and outs of your policy. Unfortunately, there are many things that insurance won’t cover, yet many homeowners think that they are covered under their home insurance policy. Below, you’ll find some things that are often not covered by your home insurance, even though you might think they are. 


Broken Pipes


While your home insurance will cover damage from water in your home (different than flood insurance), the policy probably won’t cover what it takes to fix broken pipes. Your best bet in this area is prevention. You should be sure that your pipes are insulated properly and that there is adequate airflow around the pipes in your cabinets.


Earthquakes


If an earthquake hits, you’re out of luck when it comes to your homeowners insurance policy. You typically need a separate policy to get earthquake coverage. If you live in an area prone to earthquakes, you’ll need to inquire about specific policies to protect your home from this type of natural disaster.


Floods


You’ll also need a separate policy in the event of a flood. Homeowner’s policies do not cover damage or losses caused by flooding. You can get optional coverage and this is highly recommended, especially if you live near a body of water or in an area that’s prone to flooding.


A Sewer Backup


If a sewer backs up, you’ll face some serious damage in your home. Unfortunately, your homeowners policy will not cover this type of damage. The repairs can be hefty. If you wish, you can always add this type of coverage to your policy. 


Only Portions Of Disasters May Be Covered


If a hurricane hits, any damage that has been caused by the wind will be covered by your home insurance policy. If you face flooding, however, and do not have a flood insurance policy, you’ll be out of luck. Without extra coverage, some natural disasters can be a special disaster for you and your wallet. 


Keep Up The Maintenance On Your Home


It’s important to understand what is and isn’t covered by your home insurance policy. When you know how to prepare for different situations, it will make caring for and maintaining your home and your financial future a lot easier. If you prepare accordingly for natural disasters as directed, and perform proper maintenance on your home, your insurance policy should act in the best interest for you. If you happen to live in an area where you are prone to natural disasters, make sure you get the appropriate additional coverage that you’ll need to protect you.


Purchasing a home is a large investment and not one that anyone should make on a whim. It’s important to understand your maximum budget but also what you are comfortable spending, which may not be the same number as your maximum budget. But it’s also important to fully understand the hidden costs that come with owning a home. Your mortgage payment is not the only payment you will be making each month and it’s certainly not the only cost associated with owning a home. Let’s take a look at some hidden costs listed below: Home Insurance: Insurance is something that you may know you need, but not a cost you are thinking about when house hunting. Therefore, the cost can sneak up on you. Be sure to factor in this cost, as it will be associated with your home’s location, age and value. For example, you are going to pay more if you live in an area that is prone to natural disasters such as floods or tornadoes.  Home furnishings: Is this your first home or, at least, your first home that you would like to furnish with new furniture not hand-me-downs or a couch from craigslist? There also may be items that you need for this home that you did not need in your apartment such as a dining room table or spare bedroom bed frame and mattress. Furnishing your home can be a large expense and one that you should be saving up for. You don’t need to go out and spend thousands on each item and you may want to spread out your purchases, but this is a very important cost to consider when purchasing a home. Appearance: When you purchase a home there may be things about the house that you want to change or update. This is something that not many factor in when buying the home as they are so wrapped up in the process of purchasing. However, even small updates cost money and if you spend all of your money on the down payment, you will not have any leftover to make those updates to make the home truly yours. Maintenance: If you previously rented, then maintenance is not something that you had to handle, as that is what your landlord was for. However, when you buy a home all maintenance and repairs fall on you. If you are purchasing an older home it’s extremely important to understand what needs to be updated or replaced now or in the near future, such as the water heater, furnace or roof. It’s possible that you may get the previous homeowner to take care of this if it’s in need at the time of selling, but if these updates/replacements take place a couple years down the road then it’s up to you to take care of it. There is also the general maintenance of your home such as landscaping and snow removal. Will you purchase your own equipment or hire a service? Either way, this is an additional expense. Utilities: Often times many utilities are included in your rent. Well, this is not the case when owning a home. If the home does not have a septic system then you will need to pay for water and sewerage. You will have to pay for your own cable, Internet, and phone, and let’s not forget about electricity. It’s important to understand all of the utilities that you will have to pay when you purchase a home. Property Taxes: Property taxes vary by town, but will always be an additional cost when owning a home. And, this cost will increase if you make additions or significant updates to your home. More desirable/expensive locations will have higher property taxes. This is often a cost that catches many off guard so be sure to research the locations where you are house hunting to see if you can afford the property taxes on top of all of the other associated costs. This is not meant to discourage anyone but shed light on the costs that many do not consider when they are house hunting. Make sure your budget allows for your mortgage payment and the expenses listed above that are tailored to your situation and you will have no problem becoming and staying a homeowner.

Homeowner’s insurance allows you to have financial protection if your home or the contents of your home have been damaged. If you or your family member are held legally responsible for injuries that have occurred on your property, you are also protected. Insurance is generally required by most mortgage lenders in order to secure a loan. 


There are many different types of insurance policies that you can use to cover your home. You can get anything ranging from a basic insurance policy that just covers your home overall or you can go for broader protection for your home. The types of coverage that you can get will vary from state to state.


Natural Disasters


Most insurance policies will cover damage caused by fire, wind, lightning, theft, or vandalism. Floods and earthquakes typically require additional coverage, so if you live in an area that is susceptible to these issues, then you should inquire about additional coverage. 


The Standard Policy


Most insurance policies include certain basic coverages like dwelling coverage which is the allowance for you to either repair or rebuild your home. This includes the electrical systems, the plumbing systems, and the HVAC systems. You need enough coverage for your home in order to rebuild in the event that such an event would cause a need for it. Your insurance agent can help you to find a comfortable number that will allow you enough coverage for rebuilding.


Standard coverage also may include “other structures” which can include fences, garages, cottages, and sheds. You’ll also be covered for your personal property which includes clothing, furniture, and electronics that may be damaged in your home due to theft or disaster. 


Loss Of Use Coverage


This type of coverage will pay for your living expenses if you need to move out of your home while it’s being rebuilt or restored. This would allow you to find alternative arrangements when you need it most, so it’s an important aspect of home insurance coverage. 


Liability Coverage


This coverage is one of the most important aspects of purchasing home insurance. Having liability will help to protect your assets and cover defense costs in the event that you have been held liable for causing and injury to other people or property. 

Additional Coverage Options


There are many different types of additional coverages that you can add to your homeowners insurance policy to help you get the right umbrella of coverage for you.




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