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Homeowners Insurance PROTECTS Your Real Estate Investment!
Get Homeowners Insurance or Risk LOSING It!
Homeowners Insurance is a MUST for anyone who owns real estate.
If you have a real estate loan, your LENDER requires it. No Insurance, No Loan!
What does homeowners insurance cover?
The typical policy will cover the dwelling and you from: Dwelling (coverage A): Insurance will cover the cost of repairs or rebuilding if the house is damaged by fire or one of the other covered risks. Other Structures (coverage B): Insurance will cover the costs of damage to unattached buildings on the property.
Personal Property (coverage C): This part of your homeowners insurance policy covers the costs of items like clothing, personal property, appliances etc. damaged by the event that are not part of the structure. Living Expenses (coverage D): This reimburses you for the costs associated with hotels etc. while your home is being repaired. Personal Liability: This covers against the costs of any bodily injury liability you might incur because of something happening on your real estate.
What is normally NOT covered?
FLOOD DAMAGE See Flood Insurance. EARTHQUAKE See Earthquake Insurance POWER OUTAGE LOSS SNOW OR ICE WEIGHT DAMAGE NATURAL DISASTERS See Fair Plan
Earthquake Insurance: This is termed catastrophic insurance and is getting harder and more expensive to obtain, especially on the West Coast!
The deductibles for earthquake insurance currently range from 10% to a high of 25%.
Some insurers are requiring more stringent building standards on the structure.
To shop around for this type of homeowners insurance try the following:
FLOOD INSURANCE: This again is catastrophic homeowners insurance but it is not commonly available through insurance companies.
Flood insurance is obtainable through the Government and should be a necessity for those living in flood plains. In fact, if the house is located in a flood plain, you won't be able to get a real estate loan without it! Floods happen in ALL flood zones, not just in high risk zones!
For Government info on FLOOD INSURANCE click here
FAIR PLANS: Fair Access to Insurance Requirements plans were created in the 1960's. The idea is to make insurance available to everyone, even in areas that have high risks of disasters. FAIR plans cover losses due to fire, vandalism and civil unrest (in certain areas), wind, hail, brush fires etc. FAIR plan insurance is more expensive and may have higher deductibles, but it guarantees that everyone can be insured.
If you have difficulty obtaining insurance and you have been told you are in a FAIR PLAN area, you can call the FAIR plan administrators at the following #'s: Alabama 334-943-4029
They provide residents and real estate owners, in designated areas, with coverage against hurricanes and other severe windstorms.
Windstorm Plans in Florida, Mississippi, South Carolina and Texas offer coverage only against wind and hail damage.
So, Where do I get Insurance?
First, how much does it COST? Just like any commodity, insurance rates for real estate vary. You need to check around, primarily to inquire if insurance is readily available for you and the property, and then compare rates.
Insurers will look at the claims made against the real estate for the last five years.
Yes, they don't only check up on your insurability they check the history of the real estate on the "CLUE" database! Unfortunately, you cannot order this information from Choicepoint, the database owner, unless you are the owner of the house. However, there is no reason not to ask the seller to order the report and make this a condition of the sale.
Insurance companies also look at your credit worthiness when deciding the rate you will pay for your homeowners insurance. O.K. where do I go from here? Talk to your insurance agent who handles your other insurance needs and get a quote, then compare rates from other companies. Most insurance companies offer a discount if you place all (or most) of your business with them. You might want to check online by clicking on one of these links:
Well, that's it for Insurance for now.
Let's take a look at CREDIT
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