Homebuyers Insurance Policies
There are different insurance policies including the general insurance policies, life assurances, and health insurance policies. The general policies are used to cover properties including cars. No driver would drive an unsecured car. It goes that same way that home buyer should buy an insurance policy as well. Why does a homebuyer need an insurance policy? Which policies are suitable for the home buyer?
The title insurance is closed with a onetime fee at the closing. This policy covers buyers in the event that property sold in invalid. Its scope includes the lender's policies which cover up to the mortgage value of the property. There is the owner's policy that includes the owner up the purchase price. This policy covers both the mortgage and the down payment value.
The homeowner's insurance policy covers risks such as theft, fire, and liability. Lenders often require that you get the homeowner's insurance policy. Some policies cover even some items like wedding rings, furniture, and office equipment.
Another policy important to some homeowners is the flood insurance. It is required in high risk flood-prone areas. The policy is issued by the federal government and covers up to $250,000 for a home and $100,000 for properties inside. If you want to learn whether your house requires this insurance policy, consult your local realtor. Check it out!
There are the home warranties given for new homes. They are given to cover houses for anything that may go wrong after completion. The builder of the house should be there to make the repairs. The problem is when a builder absolves liability or goes out of business. There are third party warranties provided to cover several forms. These include the workmanship for the first year, mechanical problems for two years structural defects for up to ten years. There are home warranties for existing homes that cover one year. In the event of that a defect happens, the warranty firm will do the repair or cover the cost. There are limitations that apply to different policies. Speak with a realtor to advise you more on the same especially if you are getting a new home. To read more about insurance, go to http://money.cnn.com/pf/insurance/.
The best time to get a homebuyers insurance policy here for you home or the home warranty is at the closing. Make sure that you connect with a realtor or insurance broker before you close the deal. Ask for the limitations, costs, and deductibles. Ask also if there are additional forms of coverage available.