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A Guide to Understanding Home Insurance for New Homeowners

With the global and economic climates where they are these days, no one can afford to be without home insurance. And yet, time and time again, you will hear tragic stories about families who lost everything and had to start from scratch.

Times are tough, but losing your home and worldly possessions is tougher. Many people willfully won’t consider bad things happening and therefore have no plan for the worst-case scenario.

If you have recently bought a home and want to understand more about what homeowner’s insurance is for or how it works, you’re in luck! Below is a bite-sized guide to understanding the ins and outs of this necessary expense.

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The main reason why people and companies advocate homeowner’s insurance is because it provides financial cover for when the worst happens. Don’t allow yourself to get lulled into a false sense of security advises KRS Management experts – no one expects the worst all the time, but that doesn’t mean you shouldn’t plan for it.

Instead of viewing a household coverage policy as a luxury – open your eyes to the fact that it is a necessity. Insurance policies get designed to protect your home and possessions against damage or theft.


Even if you live in the safest neighborhood in your area, no one is 100% safe. Homeowner policies are almost infinitely customizable and have certain elements that are standard and others that can be added on if you so choose.

If your home is damaged or destroyed in a fire, hurricane, or tornado – your insurer compensates you so you can repair or rebuild.


Clothing, appliances, electronics, and even furniture can be covered if they’re destroyed in an insured disastrous event. Some insurers also offer coverage for items stored away from home, like items in a storage locker or lost jewelry.

Every insurance company will limit your claim amount, depending on your chosen package. Even the cheapest home insurance plan will give you peace of mind that your home is covered if the worst-case scenario arises.


Pay attention to your broker or salesperson. They must tell you if an item or event isn’t covered, such as a flood or building maintenance. Read through the policy documents that come with your quote before you sign and accept the offer.

With so many reputable companies to choose from, getting the most value for money isn’t a difficult task. Learn to read through the sales pitches and dig into the nitty gritty details – those are where you’ll find out if you’re winning or losing.

Insurance is vital, especially if you have a family to look after. It may seem like just another expense at first, but once you’ve made your first claim – you will be so grateful that you decided to sign up.

Disasters in the home can cost hundreds of thousands of dollars, and plenty of them have even bankrupted households. Be smart and do the right thing – your family’s health and happiness depend on it.

Featured Photo by Andrew Mead on Unsplash