5 Things You Need to Know About Homeowners Insurance

First-time homeowners need to be protective of their properties. Since purchasing houses is a major monetary investment, it’s necessary to buy homeowner’s insurance to mitigate potential losses in different emergencies. Like any insurance policy, it acts as a safety net to cover any losses or damages to your home. It also reaches into liability claims for your personal belongings and other assets.

Although it may be simplistic to think that homeowner insurance covers everything around your property, it’s more complex than that. Having standard home insurance doesn’t mean that it provides unlimited and universal coverage for all your assets. There are certain caveats to what can be covered depending on several factors which you need to know.

Understanding the scope and limitations of homeowners insurance

All insurance policies vary, depending on what it’s for and what company you subscribe to. For example, the scope and protection for auto insurance aren’t directly similar with home insurance. These subtle differences can make homeowners commit mistakes and have wrong assumptions about their coverage plans. This is why it’s necessary to know the specifics of the premiums you’ll be purchasing.

In this article, we will share five things you need to know about homeowners insurance.

1. Home insurance doesn’t cover all the valuables inside your house

Contrary to popular belief, standard home insurance doesn’t protect all the belongings in your house. Insurance companies set strict limits for particular high-value items, which can be problematic if you have expensive furniture and appliances. It’s best to purchase additional coverage for specific high-value items in your home for your policy’s coverage to accommodate them. Including it in your current premium will vary on the item type and come in the form of endorsements or collectibles policy.

2. Not all homes are required to have home insurance

Generally, protecting a property with home insurance is a strategic advantage in many ways. However, it’s not necessary for all properties, with some exceptions. Although auto insurance is mandatory in most states, you’re not obligated to purchase home insurance. In most cases, your bank will require you to have one to secure your mortgage. This also applies to condominiums or co-ops.

3. Mobile homes have their own type of insurance

Some people prefer to live in non-traditional homes like mobile homes, especially with mobile home parks’ rising popularity. It’s a suitable investment for people who want to have low-maintenance expenses for their living costs. Since it’s technically a mix of a vehicle and a home, mobile home insurance has its own insurance policy type.

Mobile homes are twice as much at risk of potential accidents and damages since they’re a versatile vehicle. For this reason, most mobile home communities require tenants to have insurance for all the residents’ sake.

4. Standard home insurance doesn’t cover all types of damage

Besides limitations on covering your valuables, standard home insurance policies don’t cover protection for specific natural disasters. These premiums offer protection to a select set of potential causes for losses, which can be in the form of house fires or break-ins. For natural disasters, it may be necessary to purchase a separate policy to cover it. This is why it’s essential to research how prone your area is to these damaging events.

5. Your home insurance should cover rebuild costs instead of market value

Some investors purchase homes for the sake of entering the real estate market. This is why they need to keep their home in top condition to attract potential buyers. You can purchase home insurance as a necessary feature on your product listing’s portfolio. However, you may not be buying your money’s worth if your insurance only covers its current market value.

It’s best to match your premium’s coverage with your home’s rebuild expenses to prevent the risk of lacking in your financials. You should consult with your insurer to see if your current policy is keeping up with changes in the market in terms of material price and labor costs.


Purchasing an insurance policy for your home is a necessary step in preventing any losses in your financials. However, it’s essential to know what your property needs so that you can make the right choices as a homeowner.

Finding a reliable insurance agency is an excellent way to get the right premiums for your home’s needs. At Apex Insurance Agency, we help our clients prepare for the unexpected by providing you with different policies for homes, autos, businesses, and more. If you’re looking for home insurance in Delray Beach, contact us today!

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