I am buying my first home in the next month. This is the first time I will be purchasing home insurance. Where do I begin?
Total Comments: 6
Posted: Wed Jul 28, 2010 03:12 pm Post Subject:
Congratulations! More than likely you will have a mortgage on your home. If this is the case, you will want to begin by checking with your mortgage company to see what they are going to require. This will give you the minimum limit of coverage and maximum deductible amount you need to carry. More than likely though, you will want to carry more, but this will get you a starting point.
Posted: Wed Jul 28, 2010 03:26 pm Post Subject:
I have seen on several occasions that a mortgage company will attempt to include the value of your land in the amount they want you to carry for your homeowners insurance limit. There is no need to do that though, as if your house burns down, you still have your land.
Posted: Wed Jul 28, 2010 03:27 pm Post Subject:
In most cases, you will want to carry Replacement Cost coverage. It may cost more, but in most cases, is a better policy. It will pay for the amount it takes to replace your home or property, regardless of the amount it is worth at the time of loss.
Posted: Wed Jul 28, 2010 03:29 pm Post Subject:
Different forms are available with homeowner policies, most commonly referred to as HO1, HO2, or HO3. These forms differ primarily in what perils are covered. Perils are defined as a cause of loss. For instance, theft is a cause of loss. Discuss what perils are and aren’t covered with your agent so you can make an educated decision.
Posted: Wed Jul 28, 2010 10:56 pm Post Subject:
Your lender will only require a fire policy that provides coverage to replace the structure in the event of a total loss due to that one risk.
Homeowner's insurance will provide you with additional coverage for liability claims in addition to other property loss claims beyond just the replacement of the structure. Find a local agent who can discuss the various types of policies available.
You probably need an HO-3 or HO-5 for the broader coverages they offer compared to HO-2. If your home is a Condo, then you need an HO-6.
Posted: Thu Aug 19, 2010 03:37 pm Post Subject:
Well the first step would be to invite quote from at least top 4 home insurance companies, compare their rates and details of the policies and choose the best one for yourself.
Posted: Wed Jul 28, 2010 03:12 pm Post Subject:
Congratulations! More than likely you will have a mortgage on your home. If this is the case, you will want to begin by checking with your mortgage company to see what they are going to require. This will give you the minimum limit of coverage and maximum deductible amount you need to carry. More than likely though, you will want to carry more, but this will get you a starting point.
Posted: Wed Jul 28, 2010 03:26 pm Post Subject:
I have seen on several occasions that a mortgage company will attempt to include the value of your land in the amount they want you to carry for your homeowners insurance limit. There is no need to do that though, as if your house burns down, you still have your land.
Posted: Wed Jul 28, 2010 03:27 pm Post Subject:
In most cases, you will want to carry Replacement Cost coverage. It may cost more, but in most cases, is a better policy. It will pay for the amount it takes to replace your home or property, regardless of the amount it is worth at the time of loss.
Posted: Wed Jul 28, 2010 03:29 pm Post Subject:
Different forms are available with homeowner policies, most commonly referred to as HO1, HO2, or HO3. These forms differ primarily in what perils are covered. Perils are defined as a cause of loss. For instance, theft is a cause of loss. Discuss what perils are and aren’t covered with your agent so you can make an educated decision.
Posted: Wed Jul 28, 2010 10:56 pm Post Subject:
Your lender will only require a fire policy that provides coverage to replace the structure in the event of a total loss due to that one risk.
Homeowner's insurance will provide you with additional coverage for liability claims in addition to other property loss claims beyond just the replacement of the structure. Find a local agent who can discuss the various types of policies available.
You probably need an HO-3 or HO-5 for the broader coverages they offer compared to HO-2. If your home is a Condo, then you need an HO-6.
Posted: Thu Aug 19, 2010 03:37 pm Post Subject:
Well the first step would be to invite quote from at least top 4 home insurance companies, compare their rates and details of the policies and choose the best one for yourself.
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