If you are in the process of buying your first house, then you will also be purchasing your first homeowners insurance policy. This is an important policy that will protect your home from many types of damage and even personal injury lawsuits. But these policies do have limitations, and you need to understand what they can and cannot do to protect your home.
They do not protect your home from flooding
Flood damage is unpredictable and insurance companies will not insure your home for flooding from the elements. If your home sustains water damage from a fire being put out, this is another matter. But any flooding from storms, hurricanes, flash floods, or other natural occurrences, including heavy rains in a storm, will not be covered. However, the federal government has a flood insurance program to help homeowners. This insurance is sold by recognized, private insurance carriers. It is partly based upon where you live in the country, so certain regions with less flooding will have lower premiums. But since flooding can happen anywhere, you should get this insurance.
They have limitations for personal property
Your homeowners policy is for your house and certain aspects of your property that are affixed to it. Examples of this are a swimming pool or a built-in barbecue. But your personal property inside of your home has limited coverage. Most insurance policies will come with a minimum amount of coverage, but this amount is likely lower than you might want it to be. It is important to understand exactly what the dollar amount that is covered for your personal property as well as under what circumstances this coverage is in effect. If you were to have a fire, you don't want to find out that you don't have enough coverage for your personal property.
You will pay more if you have children
Children represent a liability from the point of view of an insurance company. If you have children, they will likely have friends over to your house. These children will have a certain probability of sustaining an injury that can lead to a lawsuit. Your premiums will reflect this. In addition, if you have a swimming pool, your premiums will be even higher. Children are injured in swimming pools and can even be killed. So, if you don't have children today, your premiums may go up when you do. However, you may want to rethink a swimming pool when you have children.
The above information should be helpful as you shop for your first home insurance policy, but before you purchase the policy, make sure understand everything that it covers and does not cover. Have your agent explain anything you are not sure about.