Preparing For Your New Homeowners Insurance Policy: What you need to know

happy family on front steps

A homeowners insurance policy is a form of property insurance. It is designed to protect your home against any damages to your house, or to the possessions in your home. Before you start your search for a quote it’s important to know what and how to prepare for your new homeowner’s insurance policy.

What Is a Homeowners Insurance Policy?

Homeowners insurance also does provide liability coverage against any accidents in your home. In other words, homeowners insurance protects you, the homeowner, against damages, fires, loss from theft, storms, and such other things which can cause damages to your property or home.

The details of what the homeowner insurance covers is located in home owners policy book. Most homeowners insurance policies cover the home and the possessions in that home, like clothing, furniture, and appliances. Most homeowners insurance policies also cover medical payments, and any payments which you’d have to pay in case somebody gets hurt while at your home or on your property.

How to Prepare For Your Homeowners Insurance Policy

You do not have to own a home in order to learn about homeowners insurance policies. Many landlords today actually require the tenants to have some coverage. Whether it is required or not, it is wise to learn about it and have the protection. Well, if you are first-time homeowner, you have come to the right place, we are going to give you a step by step guide on what you need to know, walk you through all the basics, and educate you on how to prep and prepare for your homeowners insurance policy.

1. Understand Your Homeowners Insurance Policy

Home owners insurance policy booklet

Before you purchase a homeowners insurance policy, you need to learn and understand all of its’ legal language, coverage sections, insurance forms, among such others. You should have a good understanding of exactly what it says. Understanding your homeowners insurance policy coverage is rather crucial. Whether you want to ensure you’re getting the best possible deal on your homeowners insurance, or to determine if you need additional coverage in order to fully protect your property and possessions, or to prep and prepare to file a claim/lawsuit, you need to know and clearly understand what the actual terms of that particular homeowners insurance policy are.

2. The Property and Possessions Covered By Your Homeowners Insurance Policy

When prepping for a homeowners insurance policy, you need to put into consideration the property and possessions covered by the policy. Here are some things you need to keep in mind when you are insuring your belongings:

Beautiful engagement ring covered in homeowners policy

Check limits of your insurance policy on personal belongings or items such as silverware, jewelry, furs, computer equipment, among others.

If the policy limits are way too low, you should consider purchasing a floater, or special personal property endorsement. An endorsement is basically an addition to the policy. It is a form of insurance which allows you to have valuable items insured separately.

Make a good inventory of every single thing you own/possess in your home, or on the property.

You can write down all the major valuable items you own, along with any available information, like serial numbers, make or/or model numbers, purchase prices, date of purchase, and the present value of the item(s).

Document the inventory.

woman excising on a stationary bike that she owns

You can take video clips or pictures of the items, and then attach the receipts to the inventory. Store your inventory and the visual records somewhere safe. It is good idea is to store them away from your home/property. A safety deposit is a popular option.

Tip: Remember to update your inventory whenever you make any major purchases.

Understanding your homeowners’ policy is one of the most vital things you can do in order to safeguard your property, possessions and home. In other words, you should know exactly what’s in it and what it covers.

 3. Make a Checklist

Man making a checklist for what he needs for homeowners insurance

As a first time homeowner, you need to check on insurance early. The process will be much smoother if you contact them ahead of time on rates and what can be insured. Make sure you purchase the actual amount of insurance that you need. You should take the time to fully and properly insure your property/home.

Ensure you have got enough coverage to;

-Fully rebuild your home in case it ever is destroyed by a fire, storm or any other insured disaster.
-Fully replace everything in the house.
-Protect your possessions/assets in case someone is injured while on your property.


As with any other insurance policy, homeowners insurance policies are underappreciated til they are actually needed. That’s when they instantly become a magical blessing. Getting yourself fully set up with a proper homeowners insurance policy can go quite a long way. It will help make your home/property a truly comfortable and secure place.