Home Buying: Homeowner’s Insurance

Not only is homeowner’s insurance recommended, if you are getting a mortgage, it can also be required. Homeowner’s insurance can protect from any financial loses sustained through storms, fire, theft, or other such events. Some policies will strictly cover the structure of the house, other will cover the house along with any outbuildings (i.e. detached garages and┬ástorage sheds). You can also add coverage for personal property, liability, medical payments, loss of use, earthquakes, and floods.

Homeowner’s insurance can also be pricey. Here are ten tips to hopefully help lower the cost:

  1. Raise the deductible
  2. Bundle policies (homeowners, auto) through the same company
  3. Make home less susceptible to damage
  4. Keep home safer
  5. Be sure to insure the house for the correct amount
  6. Ask about other discounts
  7. Stay with the same insurer
  8. See if you belong to any groups
  9. Review the policy limits and the value of the home and possessions annually
  10. See if there is a government-backed insurance plan

Home Buying: Title Insurance

The concept of title insurance can be very confusing. There are three characteristics that make up title insurance: (1) It protects ownership rights from both fraudulent claims against ownership and from mistakes made in earlier sales (mistakes in spelling of a name or inaccurate property description); (2) It is a one-time cost based on the sales price of the property; (3) there are both lender title policies (which protect the lender) and owner title policies (which protect the owner). Overall, title insurance can insure against devaluation or cloud on title that may occur because of incorrect information provided by the title company.