Homeowners Insurance

Owning a home is a significant achievement, but it also comes with its fair share of responsibilities and potential risks. Homeowners insurance acts as a safeguard, offering protection and peace of mind against unforeseen events that could threaten the value and security of your most precious asset.

What Does Homeowners Insurance Cover?

Homeowners insurance may include the following coverages, among others:

• Dwelling coverage may protect the physical structure of your home, including the walls, roof, floors and foundation, against covered perils (e.g., fire).
• Personal property coverage may cover your personal belongings, such as furniture, appliances, clothing and electronics. It may help reimburse you for replacing or repairing these items if they are damaged or destroyed by covered events such as fire or theft.
• Liability coverage may help if someone is injured or their belongings are damaged while on your property, and you are found legally responsible. It may help cover medical expenses, legal fees and settlement or judgment costs resulting from such incidents.
• Additional living expenses may help pay for temporary living arrangements, such as hotel stays or rental accommodations, as well as additional costs like meals and transportation if you cannot live in your home due to a covered event.

Do I Buy Homeowners Insurance Before Closing?

It is generally recommended to purchase homeowners insurance before closing on a new home. Most mortgage lenders require borrowers to have homeowners insurance in place before they can close on the loan. This requirement ensures that the property is adequately protected, which reduces the lender’s risk. Additionally, having insurance coverage in place before closing helps ensure that you are financially protected from any unexpected events that may occur between the purchase agreement and the official transfer of ownership.

Is Homeowners Insurance Paid in Advance?

When you purchase a homeowners insurance policy, you may be required to pay the premium up front for a specific period, usually one year. Some insurance companies may offer the option to pay the premium in installments, such as monthly or quarterly, but often with additional fees or charges. However, paying the premium in total up front is common and may even qualify you for discounts or lower rates.

Is a Detached Garage Part of the Home for Insurance Purposes?

A detached garage is typically covered under a homeowners insurance policy but may have different coverage limits and terms than the main dwelling. Insurance policies may have specific restrictions or additional endorsements that affect coverage for detached structures. It’s advisable to carefully review your policy or consult with your insurance agent to understand the exact coverage and any limitations that apply to your detached garage or other structures on your property.

If you need a homeowners insurance policy or want to evaluate whether your coverage is adequate, Eastern Carolina Insurance is here to help. Contact us to get started or request a free quote.