Purchasing a home is a great investment; but obviously, it’s a pricey one — especially in the very beginning. Many new home owners are looking to cut corners to save on expenses, and the first thing to go is frequently homeowners insurance. Don’t cross that off the list just yet, though, because it’s definitely something you want to have.
As much as we all like to believe that disaster cannot strike us or our family, we’re all vulnerable. Homeowners insurance can protect you should you experience a fire, theft, or natural disaster. You might also be covered in the unfortunate event that someone else is injured while in your home. Should one of these things happen to you, you simply contact your insurance company and file a claim. Someone will come out and assess the damage and offer you a certain amount of money to fix things based on what they see.
An important note to remember: A home warranty is NOT a substitute for home owner’s insurance. Realtors often include warranties when you purchase your home, but they only cover tangible items like refrigerators and air conditioners. Insurance protects you far more expansively, so this should take priority if you find yourself having to pay for both but only being able to afford one.
Also be aware that you cannot file a claim for everything. In fact, filing too many claims (especially for smaller damages) actually has the potential to cost you more money, since it can cause your policy to go up.