Building Insurance & Home Insurance

Buying or building your own home is probably the biggest investment in your life.  Most people do not like to think about the bad things that could happen to their home but it is very important to think about protecting your property. Making an insurance for your home means that if something where to happen to your investment the damages would be covered. If you are building a house you also need building insurance in case something happs on the construction site.

When you are building a house you must be protected by any damages which is why you need a  builder’s risk insurance. With this insurance you will be protected in case something happens to the unfinished house. This type of insurance is valid only during the construction process, when the house is done you have to get a home insurance. If something bad was to happen such as: bad weather, human error or  theft the insurance would cover all the costs.

If you have finished your house you will have to attend a meeting where you will be given the keys to your house and you will have to sign the loan documents. The closing process will not end until you come with proof that you have purchased a home insurance. The document that says you have a home insurance must be given to your mortgage agent.

When it comes to coverage not all insurance polices are the same, actually they are quite different. Most home insurances cover the damages of your home and of your belongings. Keep in mind that you will only get your damage money on items you have specified in the insurance. If at one point you decide that you want to add another item to the insurance list you will have to pay extra  and they will be noted on a separate list.

The damages that most insurances cover are: fire, wind, smoke, theft, vandalism, volcanic eruptions, hail and explosions. If you want your property to be insured for some calamities which are not specified in the insurance you can add them by making a separate policy. For example, if you want to buy a dishwasher needs to read some dishwasher reviews to see all the disadvantages to know what kind of insurance you need to do. You can add disasters such as : flooding, earthquake or  or short circuit.

This is why it is very important to insure your house. No one wants to thing of the worst thing when they are building a house but you must be prepared in case something terrible happens.