The idea behind home insurance is to protect owners in the event that something goes wrong. These are major types of insurance associated with home ownership.
Homeowners' Insurance: This insurance provides fire, theft, and liability coverage. Homeowners' policies are required by lenders and often cover a number of items, including property such as wedding rings, furniture, and home office equipment.
Title Insurance: Purchased with a one-time fee at closing, title insurance protects owners in the event that title to property is found to be invalid. Coverage includes lenders policies, which protect buyers up to the mortgage value of the property, and owners coverage, which protects owners up to the purchase price. Owners coverage protects both the mortgage amount and the value of the down payment.
Home Warranties: With new homes, buyers what assurance that if something goes wrong after completion the builder will be there to make repairs. But what if the builder refuses to do the work or goes out of business? Home warranties bought from third parties by home builders are generally designed to provide several forms of protection. Insurance policies and warranties have limitation and individual programs have different levels of coverage, deductibles, and costs.
Realtors can often provide home insurance and other policies are also available from insurance brokers. The time to obtain insurance and warranty coverage is at closing. Speak with your realtor or insurance broker prior to closing.
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