Buying a home is a significant financial investment for most people. To protect their investment against losses, they must purchase a homeowner’s insurance policy.
A homeowner’s insurance policy offers protection against losses and damages to an individual’s residential property and possessions. It goes without saying that the insurance policy can protect individuals’ financial future and ensure their peace of mind.
In this blog, Long Island Insurance Executive Gregg S. Marcus sheds light on a few important facts about homeowner’s insurance:
# 1 Mortgage Lenders Need Homeowner’s Insurance
It’s a commonly known fact that people get homeowner’s insurance to protect their home and personal belongings against intentional or unintentional damage and destruction. Another significant reason is that mortgage lenders also require it. Regardless of the type of house you want to buy, your mortgage lenders may ask you to buy insurance to protect their financial interests.
# 2 Homeowners Can Choose From A Variety Of Insurance Policies
There are different types of homeowner’s insurance policies you can choose from. The type of policy you purchase will largely depend on your coverage needs. A basic insurance policy provides coverage for specific losses and disasters, such as theft, vandalism, fire, lighting, and so on.
#3 Not Every Type Of Loss Or Damage Is Covered
People mistakenly assume that their insurance policy covers all types of damages and disasters. Coverage can vary from one policy provider to another. It can also differ among states.
Although each homeowner’s insurance policy is different, a standard policy covers losses to properties and specific possessions. But, certain natural disasters, such as floods are not covered. Flood insurance is a separate insurance policy altogether.
Therefore, it’s extremely important that homeowners check the terms and conditions of the policy they are considering.
# 4 Credit History Affects Insurance Premium
Different factors can influence homeowner’s insurance premium, including home size, age, structure, features, condition and location.
Of these, credit score is the most important determinant. Simply put, an individual’s credit history affects the rate they pay. If you have a good credit score, you might get favorable insurance premium rates.
#5 Shopping Around May Provide The Best Deal
When homeowners shop around, they end up finding the best coverage at the best price. Homeowner’s insurance companies are not the same and offer different policies and coverage. Compare different policies and providers to choose the right one for your specific requirements.
You may also combine several policies into one to maximize your coverage and minimize your monthly costs.
Looking for the right homeowner’s insurance policy? Contact Gregg S. Marcus for a homeowner’s insurance quote today!