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Home Insurance Policy
Many mortgage companies who are granting the mortgage loan will require that proof of the Homeowners insurance policy be shown before the closing on the house. This ensures that their investment into that home is safe in case of damage or destruction
Tips on how to determine what kind of insurance plan and insurance company is the right for you and your home.
- Compare different quotes In your area. Before jumping in and accepting the first quote that comes along, it is best to call a few different insurance companies and see which coverage plan is right for you.
- Ask the company if they offer special discounts. Depending on the company, you may find discounts ranging from fire resistant, security discounts, to senior citizen or dual insurance discounts. What is a dual insurance discount?
- Make sure that you are fully covered. If you live in a high risk area for any particular perils such as flooding, hurricane or earthquake, it is best to find out if the insurance company you are dealing with, includes these in their quote.
- It is most important to find a Homeowners insurance company that is reliable, has a reputable name and has been in business for a long time. This may mean asking friends or family members who are current homeowners who they use for their home insurance, or even searching ratings for the best Homeowners insurance companies.
- Remember that they will have a large portion of your financial investment and the possessions inside in their hands, so it is important that you feel confident in the policy and company you select.
What you should always remember about Home Insurance Companies
- That in a similar fashion as creditors looking at your previous credit history, insurance agents will be looking at your credit history as well as your past insurance history. For those who may have a high car insurance crash history or for those who have a bad credit history, this could mean higher premiums in the long run.
- Insurance companies are taking a gamble on you and although they assume that they may have to help replace something in your home along the way, if you are already a high risk client, this means you will have to pay for those risks because it is more likely their services will be needed sooner than later.
- Most basic Homeowners insurance policies will cover the house for a total replacement cost as well as the possessions of the home for a total replacement cost. Because of this, insurance agents will be asking in depth questions about the home you are about to purchase such as square footage, the age of appliances, the air conditioning and heating units, the age of the plumbing and electrical system, and even the style of flooring, countertops and cabinets.
- Although you might want to try and save money by stretching the truth about the age of the plumbing system or the style of the countertops, remember that you will only receive the replacement costs for what you have told the insurance company, so it is important to be as accurate and truthful as possible.
- The same can be said for special possessions like computer equipment and jewelry or furs. Often times a separate policy or a clause in the policy is needed to insure any special possessions for their full replacement cost, so be sure to ask the insurance company about these items.
Factors That Affect Cost of Home Insurance Premiums
In purchasing a business or real estate we have already heard the primary factor to take into account is location, location, location. It is also an item that homeowners Insurance companies take into account. If the area has a history of crime, fires, hurricanes, flooding, and other natural disasters, you will be looking at increased premiums. Over time they can add up to a considerable sum.Read More