Are you a first-time homebuyer? When you’re purchasing your first home in Post Falls, Idaho, there are lots of things to think about, including negotiating a fair purchase price, determining your down payment, finalizing the paperwork and paying the closing costs. It can be a hectic time, but don’t forget about your homeowners insurance. Homeowners insurance can help you protect your investment by ensuring that you have the funds to repair the house if it’s damaged by a covered event. Let’s take a look at how to purchase home insurance and what’s included in the policy.
Understanding a First-Time Home Buyer’s Policy (HO-3)
If you’re a first-time home buyer, your Post Falls insurance agent will most likely point you toward an HO-3 Policy. These are standard homeowners insurance policies, and they are the most common type of home insurance. These policies are designed to protect the homeowner from financial hardship if the primary dwelling, outbuildings and/or property were to get damaged by a covered event.
What’s Covered by an HO-3 Home Insurance Policy
Standard homeowners insurance policies typically cover the main dwelling, some outbuildings (other structures), personal belongings, liability and loss of use.
- The Main Dwelling – Home insurance is designed to cover the costs of repairing your home’s structure if it’s damaged by a covered event. Commonly covered events include fire, vandalism and certain types of weather, like high winds, hail and lightning. This part of the policy typically covers the main home and any attached structures, like porches, decks and garages.
- Additional Outbuildings/ Other Structures – If your property contains any detached structures, like garages, sheds and fences, an HO-3 policy will typically cover the repairs to those structures, if they’re damaged by a covered event.
- Personal Belongings – Home insurance policies typically cover the replacement of your personal belongings if they’re damaged or destroyed by a covered event. Personal belongings typically include electronics, games, furniture, toys, kitchen items and clothes, as well as other items.
- Liability Insurance – If a visitor to your home gets injured or their property is damaged, the liability part of your policy helps repair or replace their personal property and/or take care of any medical expenses.
- Loss of Use – If your home is not habitable after a covered event, the loss of use part of your policy helps pay for any additional expenses while your home is being repaired.
What’s Not Covered by a Standard Home Insurance Policy in Post Falls, Idaho
It’s important to understand that a standard homeowners insurance policy doesn’t cover every scenario. If your home is damaged via an earthquake or flood, your HO-3 policy would most likely not cover the repairs or replacement of the home. The good news is that you can purchase separate earthquake insurance policies and flood insurance policies. It’s also important to note that sewer backups and burst pipes are also not typically covered. However, you may be able to add additional coverages to your policy to help pay for scenarios like these.
Other Scenarios Where Your Homeowners Policy May Not Cover the Damage
Your homeowners insurance policy may not cover damage caused by:
- Mold and Mildew
- Damage by pests, like rodents, birds, termites and other critters
- Severe damage caused by lack of maintenance
- Injuries caused by forbidden dog breeds. Make sure to check with your insurance age to make sure any pets you have are covered by your policy.
- Injuries to people whom you’ve employed to work at your home, like housekeepers and gardeners. If you hire and pay wages for domestic helpers, you’ll need a workers compensation policy.
- Renovations and upgrades are also not covered under home insurance policies until you call and let your agent know about those upgrades so that the policy can be updated to reflect the upgrades.
Factors that Influence the Cost of Your Home Insurance Policy’s Monthly Premiums
Your homeowner insurance premiums are determined by a variety of factors, including:
- Where the Home is Located – Do you live in the city or country? Is the home next to fire hydrants, a police station or a fire station? All of these things can impact the cost of your premiums.
- The Market Value of Your Home – Homes that are worth more cost more to insure. This is because the limitations of the policy have to be higher.
- Your Past Claims History – If you’ve filed a lot of claims under your renters insurance policy or another type of property insurance policy, your home insurance premiums may be higher.
- The Types of Coverages You Choose and the Limitations – Higher home insurance limitations can increase the cost of your insurance policy, and if you add coverages, like water backup, flood insurance, earthquake insurance, umbrella insurance and coverage for expensive jewelry or collections, your premiums will be higher.
- Your Credit Score – Individuals with high credit scores often pay less for coverage than those with low credit scores.
- Your Deductible – If you have a high deductible, your insurance premiums will be lower. However, it’s important to remember that your deductible is the amount that you will cover for any claims.
Getting Affordable Home Insurance in Post Falls, ID from Boyd Insurance Brokerage Inc.
Are you thinking about purchasing a new home or have you recently purchased a new home as a first-time home buyer? If you have, our agents at Boyd Insurance Brokerage Inc. in Post Falls, ID can help you find an affordable insurance policy. We offer homeowners insurance policies from a variety of carriers, including SAFECO, Mutual of Enumclaw, Liberty Mutual, Foremost and Nationwide. We can also help you with earthquake insurance and flood insurance.
To learn more about home insurance policies and to get a quote, call us at 509-340-2693.
