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Homeowners Insurance 101
Let’s talk about homeowners insurance. When you purchase a home, your mortgage company will require you to get homeowners insurance. If you are in the lucky situation where you pay cash for it please protect your investment and get homeowner’s insurance.
With the type of homes that we have available around here most everything is covered by one of two forms of ownership. The most prevalent is the single family detached home and the other common ownership form is condo ownership.
When you own a condo, you are responsible for the inside of the building Association on the exterior. And their insurance will cover the exterior of the building in case of a disaster. But your insurance will need to cover the interior. When you call to get a policy from an agent they typically say you’ll need “X” amount of coverage. And most people just accept that. But is the amount that they quoted to be covered a sufficient amount? Remember in case of a worst-case scenario, let’s say a fire, you’ll need insurance to cover and replacing the building on the inside which would be insulation, sheet rock. doors. molding flooring and more. And then you also need to worry about little things like your kitchen cabinets, appliances, lighting. window treatments, heating and cooling systems, electrical and plumbing systems. And don’t forget your personal belongings such as clothing, furniture and electronics. You may want to get additional insurance.
A detached single family home is treated something differently. When you apply for insurance the agent will ask a number of questions, run it through a computer program and say this is the amount of coverage that you need and will cost you this much. Since the insurance needs to cover everything it’s a lot simpler. Also the personal belongings are quite simply as a percentage of the total of the building. If you have expensive things let’s say possibly artwork, jewelry, expensive clothes,expensive antiques or something along those lines you may want to get extra insurance.
Either way I recommend you get two or three quotes and then make your decision as to which one you want to go with.