Michigan first time Home Buyers: What You Need to Know about Homeowners Insurance

Buying your first home is an exciting time in your life. It is a dream come true for many families who plan to raise their children in Macomb County, MI, or just enjoy the benefits of home ownership. The one thing that you need to remember when purchasing a home, is reliable homeowners insurance coverage.

Homeowners insurance contains four basic parts.

The first is property damage which takes care of repairing or replacing your home if there is a disaster. Make sure you home is insured at replacement value. If you had to completely rebuild the home you live in – what would it cost? This is where a local independent insurance agent is needed. Not only can they help you decide how much protection you need, they can also compare quotes from several reputable companies to make sure you are getting a good deal.
The second aspect of homeowner’s coverage is personal liability. This takes care of you if someone is injured on your property and decides to sue (i.e. dog bite or slip and fall). This also pays for the legal fee’s needed to defend you and your family encase of a law suit.
The third part is medical payments. This portion of your insurance policy will take care of medical bills for injuries sustained in your home.
The fourth aspect is other living expenses which will give you the money you need to stay at a hotel or rent a short term apartment while your home is being fixed.

All Michigan Homeowners policies will cover your “Stuff”, but it is based on a percentage of your property coverage. There are limits on Jewelry, Furs and Guns, if more coverage is needed it can add-on.

Other coverage’s you may need are water back up and Flood Insurance. Although they sound the same they cover your home in different ways. Water back will be part of your main policy where Flood Insurance is a plan that will be sold on its own.

Things to think about!

There are many things to consider when purchasing Michigan homeowners coverage. First what will it take to replace my home and my “stuff”? If I get sued how much I’m I covered for? Any of our Michigan Insurance Source agents will help you with everything a first time home buyer needs to know before finding a policy in Macomb County. Consider bundling your auto and homeowners coverage together to save money. You may also find discounts by comparing rates and choosing the best company.