Ali Ata Explains Homeowners Insurance FAQs for First-Time Buyers

Ali Ata, President of AAIM Investment Inc, often fields questions from first-time buyers who are worried about homeowners insurance. After all, it's not something that is taught in school, but it comes with the territory of buying or investing in residential property.

First-time buyers want to ensure that their property or their home remains safe, and here are some of their most common questions:

What is homeowners insurance, and what does it cover?

Homeowners insurance provides coverage for your home. If your home has been burglarized or damaged by a cause that your policy covers, then your home insurance can provide compensation for it. Your policy helps pay for repairs and replace your belongings.

Should I get homeowners insurance?

Ali Ata says that the easy answer to this is a resounding yes. You never know when disaster will happen and if your home will be damaged. Having homeowners insurance essentially protects you and your property from these unfortunate incidents. You'll have to pay a lesser amount to get home repairs and replacements done.

Does homeowners insurance apply for any disaster or event?

No. It's important that you read through your insurance company's policies, so you'll understand what events, instances, and causes are covered by your insurance. For example, many insurance policies do not cover damage from natural disasters, such as floods, earthquakes, or typhoons. Others do not cover damage caused by nuclear explosions or war.

Am I required by law to have homeowners insurance?

Ali Ata says that while you're not required to have one by law, it's still an excellent idea to have homeowners' insurance. You also have to consider that if your mortgage lender or bank may require one if you're financing a house.

Ali Ata feels that having homeowners insurance is a good idea, especially when it's your first home. If you're looking to keep your property safe, get it the right protection with the correct policy.