Congratulations You have Finally Found A New Home!
You have just found the home of your dreams!! Everything looks great. So you hurry up and get that purchase agreement signed and send it away before someone else can grab the home of your dreams!!
Then the reality call comes. You need to find Insurance!
Should My Real Estate Agent Or Mortgage Company Handle My Insurance Quotes?
NO, NO, NO!!
Not only are they not licensed to provide you with insurance quotes, some not all, might just be trying to get the closing or worse yet have some type of payment referral system with each other. This is defiantly not working in your favor.
It is OK for you to collect phone information and call an agent they refer but you certainly need to look into other agencies as well. After all you are buying a home. Yes it is work, sometimes confusing, but if you are buying a home it is time to put on the adult size pants and handle your own business.
The reason you use an insurance agent, or any professional, is because you want to make sure you are in the right hands and you have someone that will make sure your best interest are their concern. If you do not understand or have specific concerns you should make sure that your agent knows and will try to resolve them for you.
Is cheaper better?
Home Insurance does not have to cost an arm and a leg, but beware of extremely low cost insurance. Usually they have high deductibles and do not offer many endorsements that could really work in your favor if you ever need that insurance to work for you.
Common Endorsements That Are Not Included In Cut Rate Insurance Quotes
Here are a few, some companies offer many more.
- Extended Replacement Cost Of Home
- Replacement Cost Personal Property
- Water Back Up
- Loss Of Use
- Special Limits On Scheduled Property (Jewelry, guns, etc..) Insurance Policies have a cap on how much the policy will pay for each of these items.
Make Sure You Have Adequate Coverage For Your Home But Also Everything Else That Comes With It
These are a few of the common parts of a home owner insurance policy
- Dwelling Coverage A Make sure you have enough coverage to rebuild your home. If you are getting a remarkable deal on a home you certainty want to do more than just payoff your loan if something happens.
- Other Structures Coverage B If you have a shed, fence or other unattached parts to your home. You need to make sure you adequate coverage to rebuild these if needed.
- Personal Property Coverage C If this is your first home and you do not have a lot of personal items you want to make sure as you add more to your home that you add coverage. You might also want to consider getting a replacement cost endorsement on personal property. Otherwise you get stuck with a check for an actual cash value on your belongings.
- Liability Coverage E It really blows me away how many times I replace policies that only have 100,000 in liability coverage. In most cases you can get up to 500,000 in coverage for less than 30 dollars a year.
- Medical Payments Coverage F This again is a very inexpensive coverage to have and most companies will go up to 5,000 in coverage for very little.
Do Not Leave Out Information To Your Insurance Agent
It is very important that you do not mislead or not tell your insurance agent important information about the home or the liability that comes with the home. And if another professional tells you not to say anything be careful who you are doing business with they could potentially be causing you to end up with a situation where ANY claim you make get denied. Even if it has nothing to do with the parts that were left out.
Should I Get Flood Insurance
YES!! YES!! YES!!
Most homes that are flooded in the US are not in what is considered a Flood plain. In Louisiana we deal with pumps, levy systems and the coast any of these can cause massive flooding far away from what would normally be considered flood prone areas.
If you are not in a flood zone you certainly need to look into getting coverage. Usually it is very inexpensive and in some cases there are private market insurance companies that can cost even less than the NFIP and offer coverage that are not normally available.
Bourgeois Insurance Agency
Bourgeois Insurance agency is an independent insurance agency that will work with you to find quality coverage and take the time to explain the details about your insurance policy. We will be with you long after the home purchase is complete and while you are making memories with your children and grand children.