If you’ve recently found the home of your dreams the most important thing you can do to protect your investment is to buy homeowners insurance at closing.
Homeowners insurance covers your home, personal property and liability for injuries to others or their property while they're on your property, says the National Association of Realtors. It can also cover fences, outbuildings and living expenses when your home is being repaired.
But what kind is right for you? That depends on the size and condition of your house, its location, how much coverage you want and how large a deductible you want.
Flood insurance is pretty much a necessity if your house is in a flood-prone area, since flood damage is not covered by regular homeowners insurance. Flood insurance is available from the federal government’s National Flood Insurance Program and a few specialty insurers, adds realtor.com. It’s also a good idea to have flood insurance even if your home isn’t in a flood zone because nearly 30 percent of covered flood losses occur outside flood zones.
If your new home has a pool you should obtain additional liability coverage, which covers court costs or other costs if you are found liable for injury or drowning.
Research a home's claim history before you buy. The Comprehensive Loss Underwriting Exchange contains records of insurance claims on homes. A claim filed in the past five years could cost you more in insurance premiums.
Living near a full-time staffed fire department often results in lower insurance premiums because they’re more likely to respond more quickly than a part-time or volunteer department if your house catches fire, according to realtor.com.
Don’t forget to shop around for the best rates, deductibles and coverage. Then get the highest deductible you can afford because most people make a claim only every eight to 10 years, adds realtor.com.
ReMax Real Estate Concepts
120 N 2nd Avenue West
Newton, IA 50208