You’ve made an offer to purchase and the seller accepted. Obtaining homeowner’s insurance should now be high on your “to do” list. All lenders require adequate homeowner’s insurance – so think of it as a necessity and not an option.
Generally, a homeowner’s policy covers the dwelling and its contents from things like fire and theft. However, a general policy might not cover expensive items like jewelry or antiques – and might not provide protection against certain types of damage – like floods or earth quakes.
Policy costs vary based on what they cover. Your insurance agent can help you understand the coverage you’ll need. Discounts are often available if an alarm system is installed – or if you purchase your automobile and homeowners insurance from the same company. While a higher deductible can lower your premium – some lenders set maximum deductible amounts. Your lender may require that premiums be paid through an escrow account – so be sure to ask.
Contact your insurance agent to explore the options and to determine the level of protection you need – and be prepared to provide proof of insurance at closing.
