Homeowners insurance is a very important part of home ownership. The JS Realty Team @ Samson Properties guides our clients through the entire home buying process, but there are 2 items that the Buyer must handle themselves: obtaining their loan and purchasing homeowners insurance.
Homeowners insurance will be required by your Lender if you have a mortgage on your home, and they will require a minimum level of coverage to protect their interest in the property.
Homeowners Insurance is actually comprised of two different types of protection: hazard and liability coverage.
HAZARD INSURANCE
This protects you should any damage and/or destruction happen to your home and contents. It will cover fire, theft, and certain natural disasters. If you live in a flood zone or in an area that could potentially have earthquakes you will need to purchase additional coverage to include these natural disasters.
LIABILITY COVERAGE
If someone gets injured on your property, the liability coverage is in place to protect you from medical costs and possible lawsuits.
There are also several factors to consider when choosing your insurance:
COVERAGE MINIMUM – Depending on how you feel about insurance, the minimum level that your Lender requires might not provide you with enough peace of mind. Although you may want to keep your homeowners insurance cost down, you also want to make certain you have all the coverage you need.
WHAT IS INCLUDED – Be very clear about what is covered and more importantly what is NOT covered. You don’t want to lose something and later find out it wasn’t included in the policy.
DEDUCTIBLES – Most policies come with a $500 or $1,000 deductible, but speak with your insurance agent to see what works best for you – and your budget!
PERSONAL PROPERTY – Be sure you know exactly what personal property is covered. You’ll also need to determine whether you want replacement value or depreciated loss value. You should also review the value of your possessions yearly. You don’t want to spend money for coverage you don’t need if the value of certain items has decreased.
BUSINESS NEEDS – Do you have a home office? There are both property and liability business exposures that most standard homeowner policies don’t address, as well as low levels of coverage. The typical policy appears to be around $2,500 for in-home office equipment. And while that may sound like enough, by the time you add the costs of your computer, software, tablet, printer, scanner, phone, furniture, etc., it could very well exceed that amount. You’ll need to find coverage that can include all of your home office equipment and supplies.
Remember, your home is usually your largest investment. This is not the time to save a few dollars and possibly expose your family to hardships if the unthinkable happens. Perform your due diligence, be comfortable knowing what your homeowners insurance covers, and ensure that you have enough protection in place.
Contact a JS Realty Team member to answer any questions about any facet of the home buying or selling process or if you need a referral for a reputable insurance agent.
The JS Realty Team – not only serving Brambleton, serving all of Northern Virginia.
