First Time Homeowners in Baton Rouge: What You Need To Know

Homeowners insurance policies can be hard to understand, but as a first-time homebuyer, you are in a more difficult position; trying to find an insurance plan designed to protect your largest asset, without knowing the basics of what it covers. Being under-insured can leave you dangerously exposed when you need protection the most. Here’s what you need to know about homeowners insurance.

Is Homeowners Insurance Flood Insurance?

This is a common misunderstanding among Baton Rouge, LA first-time homebuyers. Homeowners insurance isn’t the same thing as flood insurance. Flood insurance will protect your residence and property against damage caused by water, such as flooding, snow melt, rain, etc. Homeowners insurance doesn’t offer protection for this event. If you happen to live in a flood zone, you will be required to carry flood insurance by your mortgage lender. The coverage is optional, but recommended, if you do not live in a flood zone.

What Are Limits and Deductibles?

A deductible is the amount of out-of-pocket money you will have to pay for an insurable incident. Your policy may have more than one. Your insurance policy won’t offer a benefit payment unless the amount of your claim exceeds the deductible.

Limits are the maximum amount of benefits stated in your policy that your insurance company will pay out in the event of a covered incident. They should reasonably cover the value of your home and possessions, as well as exposure to liability claims. To increase your limits, ask Cordell Insurance about adding an umbrella policy for extra coverage.

Is My Personal Property and Contents Covered?

In addition to providing financial reimbursement for damages and losses to your home, homeowners insurance also offers protection for the value of your home’s contents and your personal property. This includes furnishings, electronics, clothing, music purchases and intangible software. You may need to purchase additional coverage for jewelry, art or antiques.

What is Liability Coverage?

You may be responsible for paying damages such as medical expenses and lost income if someone is injured in your home or on your property, even if the injury wasn’t a result of intentional negligence on your part. Homeowners insurance offers protection from these liabilities so that you can relax and not worry about inviting people into your home.

What Else Do I Need To Know About Homeowner’s Insurance?

There are a variety of events and incidents which are and are not covered by each specific homeowners insurance policy. In order to determine which policy limits and deductibles are necessary to fully protect your new Baton Rouge, LA home, and to learn what types of incidents are insurable, contact our office today. At Cordell Insurance, we’ll help you arrive at the perfect amount of homeowners insurance coverage for your individual needs.