Home insurance is one of the most important investments a homeowner can make. It protects homeowners from various risks and liabilities, including damage to the house, lost belongings, and personal liability.

While homeowners should always ensure they have adequate coverage, there are a few key times when it's especially important to ensure that the right insurance policy is in place.

What Does Home Insurance Cover?

Before discussing when to buy home insurance, it's important to understand its coverage. Home insurance typically covers damage to the home due to hazards like fires or storms and liability protection.

Liability protection is a critical component of home insurance, as it covers any costs related to injuries or damage caused by the homeowner to another person on the property. With this type of coverage, even legal fees can be covered in the event of a lawsuit. Home insurance can help safeguard homeowners against financial loss and provide peace of mind.

Home insurance provides financial protection in case of disasters or accidents that could damage your home or cause injury to someone on your property. By having an insurance policy, you can be assured that you and your home are protected and that you won't be financially burdened if something unexpected happens.

When to Buy Home Insurance?

When deciding when to buy home insurance, the best time is before the policy is needed. In general, homeowners should purchase home insurance as soon as they become homeowners.

For renters, it's essential to purchase renters insurance to protect their belongings. In addition, when refinancing a mortgage, it can be important to review home insurance coverage to ensure the right protection is in place.

1. When Moving

Homeowners may also need to purchase home insurance when moving to a new home. If the homeowner is selling the house, the contract may require that the home be insured until the closing date. 

When purchasing a new home, it's important to ensure that the coverage is adequate for the new property, as the risks and liabilities associated with a new home can differ from the previously occupied one.

2. When the Policy Is Up for Renewal

When a home insurance policy is up for renewal, you must review the coverage to ensure it's still adequate. Home insurance involves assessing the risk associated with the property, and you should ensure that the policy is still adequate and in line with current risk levels.

3. When Taking Out a Mortgage

When taking out a mortgage, purchasing home insurance is important to ensure that the property will be protected if something goes wrong. While the lender may require a minimum coverage amount, the homeowner may need to purchase more coverage if the asset is considered more valuable than the loan amount.

4. When Making Significant Changes

If a homeowner is making significant changes to their home, such as an addition or remodel, it's important to review their home insurance coverage to ensure it's still adequate. While some changes, such as updated plumbing or electrical, may be covered by the existing policy, others, such as significant remodeling, may require additional coverage.

Conclusion

At all times, homeowners must have adequate home insurance coverage. While reviewing home insurance when making significant changes to a home or taking out a mortgage, it's also essential to ensure the coverage is up-to-date when the policy is up for renewal. With the right home insurance, homeowners can protect themselves from various risks.

Get one of the most trusted and reliable insurance agencies in Alabama here at The Oakley Agency. We offer comprehensive policies that protect your family, business, vehicle, and home from unexpected losses. Contact us for more information.