The most significant financial investment you will probably make is the purchase of a home. There is a lot to consider when you are doing this, and one of the essential items might just be the insurance you will be required to have in place to close your escrow.
Do not put this off to the last minute since so many factors go into buying homeowners’ insurance near you. Location, location, location means more than the address. You will want to make sure insurance coverage is available in your area.
Does your area qualify for Home Insurance in California?
Some areas do not qualify for a standard homeowners’ insurance policy. Some homes are at higher risk of loss due to possible flood, or the home is in an area with higher exposure to damage caused by fire. Your lender will advise you of their insurance requirements to satisfy their loan.
The lender will also advise you as to how much coverage you will need. If possible, try to get their requirements well ahead of the close of your escrow and then enlist the help of your insurance agent to find the best policy for you.
Components of a Standard Homeowners’ Insurance Policy
A standard Homeowners’ insurance policy has two components. The first component of the policy, referred to as the Property Section, covers the physical damage to the interior and exterior of the structure. It also includes coverage for your possessions and any structures on the property, such as a detached garage or swimming pool.
You want to make sure you are buying enough insurance to cover the cost of rebuilding your home, not the market value of it. Remember, you are insuring your home, not the land it is situated on.
Discuss options with your agents such as Replacement Cost, Guaranteed Replacement Cost, and deductibles that will apply in the event of a loss. At that time, look into any discounts that may be realized if you have your homeowners and automobile insurance with the same company.
The second component of the policy is referred to as the Liability Section. This coverage provides protection for accidents you are liable for that occur inside or outside your home and result in bodily injury or property damage to a third party for which you are liable.
Make sure you understand what you are buying and how your coverage will apply in the event of a loss.
Visit Makar Insurance Agency at 1130 La Brea Ave, West Hollywood, CA 90038, to get started on tailored home insurance coverage. Our team would like to help you with your insurance needs.