Before signing a purchase contract for a new home, consider protecting that investment with homeowners’ insurance. This coverage protects homeowners from losses related to disasters such as fires, storms, and volcanic eruptions. While it is legal to own a home without buying insurance, mortgage lenders require the purchase of this coverage.
Below is a list of events covered by standard homeowners’ policies.
* Structural damage: Home Owners Insurance in Austin TX pays to rebuild or repair the home if it is damaged in a covered disaster (not including floods and earthquakes, unless separate coverage is purchased). Rebuilding costs should not be based on the home’s purchase price, nor upon the cost of the land.
* These numbers can be obtained from insurance agents, realtors, and building associations.
* Lost personal items: Policies typically compensate homeowners for 70% of the value of clothing, furniture and possessions lost in a disaster or stolen. To maximize coverage, inventory possessions and store the list somewhere safe.
* Liability: Homeowners’ insurance protects against bodily injury or property damage to third parties. Damages and court costs are typically covered up to the policy’s limit. Liability coverage usually begins at $100,000, but most insurance experts suggest having about three times that level of coverage.
* Living expense reimbursement: This coverage pays restaurant and hotel bills, as well as other expenses if a homeowner is forced to find other accommodations in the event of a disaster.
The Cost of Homeowners’ Insurance
Homeowners’ insurance expenses are influenced by a variety of factors such as local crime rate, home size, and the likelihood of a natural disaster in the area. Coverage levels also have an effect. Consider the following coverage options:
* Cash value replaces the home and its contents minus depreciation.
* Replacement cost replaces the home and its contents without a deductible.
* Guaranteed replacement value pays to restore the home to its previous condition, no matter the cost.
Keep premiums low by buying homeowners’ insurance and auto coverage from a single carrier and by paying a higher deductible. For example, a homeowner can save more than 25% by raising the deductible from $500 to $1500. Ask Patrick Court for any additional discounts.
Choose Coverage Wisely
Homeowners should shop around for coverage, getting a minimum of three price quotes. Anyone buying Home Owners Insurance in Austin TX should ensure that the company they choose is honest, and stable enough to pay claims in the future.
