The process of finding the right home insurance can be challenging. There are a lot of things to consider, and if it's your first time taking out this type of coverage, the details can be confusing. There are plenty of home insurance agents and companies that can help you find the right policy. However, you will also want to do your research and know what you are getting into when you find a plan that may work for you. Here are three things that you may not know about homeowner's insurance. 

Your Lender May Require It

If you have a mortgage, there's a good chance that your mortgage lender requires that you have home insurance. Your mortgage lender will want your home to be protected until you no longer owe on your mortgage. To buy a home, you may even have to pay the first years payment upfront. The type of policy they will require will depend on your home, the area you live in, and also the overall risk. At a minimum, liability coverage of at least $100,000 is required by most lenders. 

Some Things Are Not Covered

Another thing that you need to know about homeowner's insurance is what's covered and what isn't covered by this type of insurance. Policies will vary depending on the insurance company and other factors, such as where you live. Checking your plan to see where additional coverage may be needed is essential. For example, if you live in a flood-prone area, you will likely need a separate flood insurance policy. Coverage for other types of natural disasters, like earthquakes, may also not be included in your plan. Depending on where you live, this could be a problem.

Claims Can Be Denied Because Of Poor Maintenance

There are a lot of reasons why you should maintain your home. A well-kept home is safer and more valuable than one that is in disrepair. A well-maintained home will also sell faster and for more money if it goes on the market. Your home insurance is another reason to take care of your home. If there is damage to your home, a lack of maintenance may contribute to the damage. If this is the case, your claim can be denied.

When it comes to home insurance, there are a few things that you may not know. First, your mortgage lender will usually require at least liability insurance on your home. Also, not all events are covered by your homeowner's insurance policy. You may need separate coverage for natural disasters and other situations. Another thing that you may not be aware of is that maintenance is essential. A lack of home maintenance may lead to claims being denied.