Buying a Home: Homeowners Insurance

By Jeff Adolph

Residential Real Estate

Homeowners insurance is a must when you are considering the purchase of a home, in fact, most lenders will require you to have this cover as a part of your loan agreement with them.

For those of you who are not familiar with homeowners insurance, this policy is taken out on your house, and will cover your home from damage in the event of fires, tree's falling and storm damage, and other natural disasters. However, most standard homeowners insurance policies do not cover your home against earthquake and flood damage. So, if you require this type of cover in your policy you may have to take out additional coverage. Homeowners wishing to cover their home in the event of flooding should also visit the National Flood Insurance Program, which is located at www.floodsmart.gov.

When you go in search of homeowners insurance there are three important factors you need to consider, these are:

1) Remember that you are covering your home's replacement cost in the event of a disaster. So you need to consider how much it would cost you to replace your home in today's economic environment.

2) To realstoically give yourself enough insurance cover, consider how much it would cost you to have your home rebuilt, and include any extras such as flooring, curtains, lights and other fixtures and fittings, as well as any improvements that have been made to the property, such as landscaping, and a decking. And don't forget to include your home's content, such as your furniture, clothing and electrical goods.

3) You do not need to include the cost of you land in your insurance, as it is highly unlikely that you will need to replace the land that your home sits on. Plus, this added cost to your cover will make your insurance premiums more expensive.

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By Jeff Adolph

Residential Real Estate

Homeowners insurance is a must when you are considering the purchase of a home, in fact, most lenders will require you to have this cover as a part of your loan agreement with them.

For those of you who are not familiar with homeowners insurance, this policy is taken out on your house, and will cover your home from damage in the event of fires, tree's falling and storm damage, and other natural disasters. However, most standard homeowners insurance policies do not cover your home against earthquake and flood damage. So, if you require this type of cover in your policy you may have to take out additional coverage. Homeowners wishing to cover their home in the event of flooding should also visit the National Flood Insurance Program, which is located at www.floodsmart.gov.

When you go in search of homeowners insurance there are three important factors you need to consider, these are:

1) Remember that you are covering your home's replacement cost in the event of a disaster. So you need to consider how much it would cost you to replace your home in today's economic environment.

2) To realstoically give yourself enough insurance cover, consider how much it would cost you to have your home rebuilt, and include any extras such as flooring, curtains, lights and other fixtures and fittings, as well as any improvements that have been made to the property, such as landscaping, and a decking. And don't forget to include your home's content, such as your furniture, clothing and electrical goods.

3) You do not need to include the cost of you land in your insurance, as it is highly unlikely that you will need to replace the land that your home sits on. Plus, this added cost to your cover will make your insurance premiums more expensive.

Image Source: Microsoft Clipart

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*RealQuestions RealAnswers*

Click on Comments below and share your thoughts and opinions, ask a real estate question or offer story suggestions...

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© 2006+ Jeff Adolph GayRealEstate USA

Proudly Sponsored By:

By Jeff Adolph

Residential Real Estate

Homeowners insurance is a must when you are considering the purchase of a home, in fact, most lenders will require you to have this cover as a part of your loan agreement with them.

For those of you who are not familiar with homeowners insurance, this policy is taken out on your house, and will cover your home from damage in the event of fires, tree's falling and storm damage, and other natural disasters. However, most standard homeowners insurance policies do not cover your home against earthquake and flood damage. So, if you require this type of cover in your policy you may have to take out additional coverage. Homeowners wishing to cover their home in the event of flooding should also visit the National Flood Insurance Program, which is located at www.floodsmart.gov.

When you go in search of homeowners insurance there are three important factors you need to consider, these are:

1) Remember that you are covering your home's replacement cost in the event of a disaster. So you need to consider how much it would cost you to replace your home in today's economic environment.

2) To realstoically give yourself enough insurance cover, consider how much it would cost you to have your home rebuilt, and include any extras such as flooring, curtains, lights and other fixtures and fittings, as well as any improvements that have been made to the property, such as landscaping, and a decking. And don't forget to include your home's content, such as your furniture, clothing and electrical goods.

3) You do not need to include the cost of you land in your insurance, as it is highly unlikely that you will need to replace the land that your home sits on. Plus, this added cost to your cover will make your insurance premiums more expensive.

Image Source: Microsoft Clipart

-----------------------------------------------------------------

*RealQuestions RealAnswers*

Click on Comments below and share your thoughts and opinions, ask a real estate question or offer story suggestions...

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© 2006+ Jeff Adolph GayRealEstate USA

Proudly Sponsored By:

© 2006+ Jeff Adolph GayRealEstate USA

Proudly Sponsored By:

Comments

[George]

Good information again, Jeff. So many first-time homebuyers have no idea what we're talking about when we mention "hazard insurance" or "homeowner's insurance." It's good to get the word out again and again. One thing that's becoming far more prevalent is HO-6 coverage on condominiums, too. It's also called "walls-in" coverage. We all know that condos have insurance that covers the exteriors of buildings, mechanicals, sidewalks and grounds, etc. but this coverage will take care of interior damage that an owner might suffer.

If a tree falls, for example, and damages a roof, there might be quite a bit of damage to the interior of a condo unit. Regular condo coverage won't take care of the repairs that would be needed, so an HO-6 policy would be beneficial to an owner. Also, common "tenant's" coverage, which many people have availed themselves of, will also be less than adequate.