We are building a brand spanking new house. So we are getting ready to close and I am shopping insurance. It comes with a 10 year warranty on most stuff, and some items are covered by manufacture warranty for longer. There are 3 levels apparantly, HOA, HOB, and HOC (nationally I think they are 1,2, and 3 respectively). The cheaper one costs about $1250, but doesn't cover water damage. The B policy covers water, but no medical (I think). The C covers just about anything, but starts at $2000.
Since it's a new house, our first instinct is to take the cheapest policy. But if a water pipe breaks, we would be personally liable to pay damages. Actually, I need to re-read the warranty and see if the builder offers warranty on piping and electrical and for how long. But if they don't cover those things, should I spring for the costlier insurance coverage on a new house?
Since it's a new house, our first instinct is to take the cheapest policy. But if a water pipe breaks, we would be personally liable to pay damages. Actually, I need to re-read the warranty and see if the builder offers warranty on piping and electrical and for how long. But if they don't cover those things, should I spring for the costlier insurance coverage on a new house?
