Congrats! You are through Attorney Review and in the throws of securing your mortgage. Now you have to start shopping for a Homeowners Insurance Policy! Here 5 tips from Top Insurance Agent Aaron Levine of LG Insurance Group.
5 Insurance Tips for New Home Buyers
Buying a new home encompasses lots of excitement and nuances; from your Realtor, Title Agent, Attorney, Inspections, Mortgage and of course the Insurance. As a new home buyer, you are required by your mortgage company to purchase a Homeowners Insurance Policy. The bank involved is only concerned about their investment, the amount of money they are lending you, and they typically do not care about the additional coverage that you purchase. As the Home Buyer, you need to be aware of the whole policy, not just the bank’s interest.
1) Homeowners Insurance starts with a dollar value on the rebuilding of your home. Many people do not understand the true meaning of Replacement cost. Replacement cost is not just the cost to rebuild the structure or replace your personal property. Other expenses that will come out of this figure are: demolition, debris removal, architectural designs, building code changes and loss of use. These additions can increase your costs by hundreds of thousands of dollars and it is important to make sure your insurance policy has a high enough limit to cover it.
2) Check your Deductibles. The higher the deductible, the lower the premium. Make sure you can afford to pay all of the deductible and confirm with your agent to determine if you have a separate Wind or Hurricane deductible on your policy. These deductibles can easily cost you more than $10,000 should a claim arise.
3) You should have a Water Back-Up Coverage included. A large portion of claims come from sump pumps or water backing up in the basement or crawl space and can be costly to get it fixed. This is not Flood Insurance. This is for your home and your home only. Flood, must affect two or more properties.
4) Flood Insurance– Everyone can purchase flood insurance. If you are in a high-risk zone, you will be required by your bank to purchase flood insurance and will need to get an elevation certificate to do so. Even if you are in a low risk zone, it would be prudent but not required to purchase flood insurance.
5) Personal Property replacement including Jewelry and Artwork. It is often misunderstood if jewelry, art and collections are covered in case of fire, theft or vandalism. Homeowners Insurance Policies cover these limited, so it is important to add the necessary coverage through an endorsement or purchase a separate) policy if you have pieces that are of greater value than the basic policy covers.
These tips will help you succeed! These tips don’t mean that your insurance will be expensive. What will be expensive is if you have to pay for damage out of pocket because you are missing coverage. If you have further questions, please have Kate reach out to me or contact me directly!Aaron Levine LG Insurance Group firstname.lastname@example.org www.alevinegroup.com 877.288.7169