homeowners insurance

HOMEOWNERS INSURANCE

September 28, 2021 in Blog, Home Buyer Guide

Today, we are going to talk about homeowners insurance. Homeowners insurance is generally required when you purchase a home, so it is a good idea to be well-informed about it!

What is a homeowners insurance policy?

A homeowners insurance policy will protect you from certain losses or damage that incur on your property. It is also required when you obtain a mortgage loan on a home.

What you should know about homeowners insurance

If you are a homeowner, the first thing you should know is not everything is covered by a policy. There are certain exclusions, such as flood or earthquake damage, that may require a separate policy.

Second, there are dollar limitations when it comes to different things that are covered in your policy. For instance, let’s say you have your foundation covered. The insurer will only cover $10,000 worth of damage. You want to make sure to look closely at your policy. Pay attention to those specific inclusions and what the dollar amounts are so that you can decide if they should be increased or if they will be sufficient for your needs. Note: things like jewelry or additional items may need to be insured separately.

Replacement COst

When you insure a home, there is a dollar amount that the insurer is willing to cover to replace your home. For example, if your house is a total loss due to a fire, the insurer will only replace up to a certain amount. In the event that you do need to replace your home, make sure that your insurance coverage will be sufficient.

Do i have to replace my home?

If you choose not to replace your home after a total loss, there is an actual cash value that the insurer is willing to give you. This cost is the value of your home minus depreciation. So, if you see the term “actual cash value” in your homeowners insurance policy, that is what it means.

Liability

Generally, car insurance comes to mind when we hear the word “liability“. However, it is important to understand the role it plays in homeowners insurance. In the event, an accident occurs and damage is caused to a person or their property, you want to make sure you have enough liability coverage. Usually, you will see a dollar amount of how much the insurer is willing to cover in your policy. However, it is very important to make sure that coverage is significant. Especially if you have assets that need to be protected!

monica

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About Me

About Me

Hi I'm Monica! I'm a Real Estate professional in love with houses, especially vintage houses. I even have my Historic Homes Specialist designation. I enjoy decorating and rehabbing and helping my clients create their dream home with inexpensive updates. I also love helping sellers get top dollar for their property by taking the dated out of their home and staging in a modern simplistic way. I'm also obsessed with Mid Century furniture, so if it doesn't fit in my house, you'll find it in my Etsy Shop. I enjoy coffee and thrift store shopping to look for items to repurpose and use in house. And of course anything vintage, I’m a bit of a June Cleaver. I’m a wife and a mom of teenage twins that I homeschool. I am currently a Realtor in San Antonio, TX, and a lender in both Texas & California. But if you are from Southern California don't worry I have connections, I also help educate all over the country about the home buying process and have a team of people that i work with to help you reach your goals. We moved to SATX from SOCAL in 2018 to simplify our life. I love it here and have helped several people relocate. Read More

Monica

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