Selecting Homeowner's
Insurance
One of the many things you
will have to think about while you are in the process of buying a new home is
the insurance you will need to protect it.
Homeowner's insurance is more than just a good idea-it is required by
your lender as part of your mortgage contract.
You will not be able to close escrow on your home if you do not have an
appropriate homeowner's policy in place.
Homeowner's insurance
protects your home against multiple possible risks, from fire to burglary. A comprehensive homeowner's insurance policy
will provide coverage for your home as well as everything inside it. You will need to make sure you have the right
level of coverage for your needs.
Where To Find An Agent
A good place to start
shopping for homeowner's insurance is with your current insurance agent. There is likely to be a discount if you
insure both your home and your car with the same company, so it is well worth
considering the company that insures your car.
If your car insurance company does not handle homeowner's insurance
policies, you can instead ask for referrals from your Premier Beach Realty Agent or your mortgage
broker.
The Coverage You Need
A good homeowner's
insurance policy provides enough coverage to rebuild your home from the ground
up if necessary, as well as coverage for all of the property inside your
home. You should not confuse the
replacement cost of your home with the market value; these are two different
things, as market value includes the value of the land. Insurance does not cover your land, only the
structures on it and the contents of those structures. You insurance company will use the appraisal
of your home to determine all of the structural factors that go into
determining replacement cost.
The contents coverage is
usually a percentage of the replacement cost of the home. You should be aware that certain high value
items such as jewelry may require a special coverage called a “floater” added
onto the policy in order to cover them for their full value, as there are
usually limits on such items in the standard policy. Be prepared to provide an appraisal on high
value items.
A good insurance agent can
guide you through the process of selecting the right homeowner's insurance
policy for your needs and ensuring your new home is protected properly. Finding someone you can trust is
important-after all, this is the biggest purchase you will ever make!
