New To Home Insurance? Check Out These FAQs For Home Insurance Novices

If you're buying a home for the first time, you can protect your investment better with a comprehensive home insurance plan. With all the details surrounding home insurance plans, you might be confused about how these policies work. Read on to find the helpful answers to common questions that are asked by many first-time home insurance buyers.

What does a standard home insurance plan cover?

If your home is damaged in a fire, a standard insurance plan will likely cover the losses so that you won't have to pay out-of-pocket costs to have the problems fixed or certain items replaced. Theft is also covered by most standard policies. You can additionally look into getting a standard plan that will cover roof, fence, and foundation damage. Appliance and plumbing problems are additionally covered under some standard plans.  

What are some of the other types of home insurance plans?

In addition to a standard plan, you may opt to choose from a variety of different plans that might give you more of the right coverage. If you plan to rent instead of buying a home, a renters insurance plan may provide adequate coverage. Condo and co-op policies are also available. You can even purchase an insurance policy that's intended specifically for a mobile home or a historic/landmark home.

How often will you pay the premiums?

Home insurance premiums are usually paid on a monthly basis, but you may also choose to pay quarterly or even annually if your insurance company allows you to set up a different payment schedule. Some home loan providers require lenders to pay their home insurance premiums together with their mortgage payments, which you may also have to do if you have a mortgage.

Can you claim your home insurance as a tax deduction?

In most cases, home insurance isn't a tax-deductible expense. However, you may be able to write off at least a partial amount of your home insurance payments on your taxes if you use your home for work purposes and can prove it to the IRS. If you plan to rent a room or another part of your home to a tenant, you could also try to claim your home insurance on your taxes. Another exception that could save you money on your taxes is if your insurance provider doesn't cover the full amount of a home-related expense.

The right home insurance policy can help you avoid certain hardships if things go wrong. You might even save money on your home insurance if your chosen provider also offers automobile insurance, health insurance, and other coverage plans and is willing to offer you a discount for bundling these policies.

Contact a home insurance agent to learn more.