Homeowner's Insusrance - An Important Piece of a Purchase Transaction
April 16, 2009
Since I posted yesterday about the CHILD ID day and the issuing of identification cards to protect children, I thought I might focus today on how a homeowner or a renter can protect a home, the possessions and oneself from liability.
When you purchase a home, if there is a lender involved, one of the necessary purchases you will have to make is homeowner's insurance.
It is important to contact an insurance agent as soon as you have an accepted contract and are opening an escrow. It is a good idea to shop around as not all insurers offer the same coverage or the same rates. It is also possible that some insurers no longer will take on new customers in California. If you have car insurance with a particular insurer, they may also offer homeowner policies. If you sell a house that is insured by a particular company, chances are they will insure your new house. You need to determine from whom you will be obtaining your homeowner's insurance so that you do not arrive at the date to close and find yourself unable to obtain the necessary insurance. Companies keep claim records and if there were numerous claims, or even one claim, they may decline to issue new insurance. If you had two or more claims in the last three years, an insurer might refuse to issue you new coverage. Obtaining proper insurance can be a big deal!
If you are one of the homeowners who sold and then rented, be sure to obtain a renter's policy so that you have a continuous record of being insured. If you can't sell your house and decide to rent it, make sure that you notify your insurance carrier and get a landlord policy.
Ask whether the company will pay 100% of the coverage amount in the event of a total loss. Some might pay as much as 120%-200%. Find out what is excluded from the coverage.. With older homes, it is wise to pay for a code upgrade rider. Also consider increasing the deductible as it is risky to make numerous claims and a higher deductible will cover the big losses, but you will cover the lesser ones. A higher deductible also reduces the premium cost. However, you must check with your lender as some will insist on a low deductible.
If you don't know where to start in your search for insurance, you can call CENTURY 21 Lois Lauer Realty as we have an insurance agent on site. 909-748-8272.
Since I posted yesterday about the CHILD ID day and the issuing of identification cards to protect children, I thought I might focus today on how a homeowner or a renter can protect a home, the possessions and oneself from liability.
When you purchase a home, if there is a lender involved, one of the necessary purchases you will have to make is homeowner's insurance.
It is important to contact an insurance agent as soon as you have an accepted contract and are opening an escrow. It is a good idea to shop around as not all insurers offer the same coverage or the same rates. It is also possible that some insurers no longer will take on new customers in California. If you have car insurance with a particular insurer, they may also offer homeowner policies. If you sell a house that is insured by a particular company, chances are they will insure your new house. You need to determine from whom you will be obtaining your homeowner's insurance so that you do not arrive at the date to close and find yourself unable to obtain the necessary insurance. Companies keep claim records and if there were numerous claims, or even one claim, they may decline to issue new insurance. If you had two or more claims in the last three years, an insurer might refuse to issue you new coverage. Obtaining proper insurance can be a big deal!
If you are one of the homeowners who sold and then rented, be sure to obtain a renter's policy so that you have a continuous record of being insured. If you can't sell your house and decide to rent it, make sure that you notify your insurance carrier and get a landlord policy.
Ask whether the company will pay 100% of the coverage amount in the event of a total loss. Some might pay as much as 120%-200%. Find out what is excluded from the coverage.. With older homes, it is wise to pay for a code upgrade rider. Also consider increasing the deductible as it is risky to make numerous claims and a higher deductible will cover the big losses, but you will cover the lesser ones. A higher deductible also reduces the premium cost. However, you must check with your lender as some will insist on a low deductible.
If you don't know where to start in your search for insurance, you can call CENTURY 21 Lois Lauer Realty as we have an insurance agent on site. 909-748-8272.
posted by shirley harry at 5:35 PM
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