Owning property is a dream come true for a lot of people. There is a sense of joy in having a place to call your own. But before you get to savor life after closing on a house, you’ll need to go through a process that can sometimes drag on and surprise you with costs you never really considered. One of them is home insurance.
To find out more about the coverage, the cost, and the purpose of home insurance, check out the FAQs listed below:
Q: Do I need homeowners insurance?
Home insurance is not required by law. However, mortgage lenders often require buyers to take out an insurance policy, which mitigates the lender’s risk in case the property is damaged before the mortgage is fully paid. Beyond a lender’s requirements, home insurance is a great safety net for families. It provides a level of financial security in case the home is destroyed by fire or calamities.
Q: What does homeowners insurance cover?
Coverage depends on the type of insurance you buy and the company you choose to buy it from. However, in general, policies cover the following:
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- Damage to property
Homeowners insurance is designed to help pay for home repairs in case of a disaster. Most policies cover fires, storms, and other life-altering events. However, when vetting policies, it is crucial to ask about what it covers because companies don’t usually insure against earthquakes and other “acts of god.”
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- Belongings and possessions
In addition to the property, some policies also cover items inside the home to compensate the homeowners for damaged, lost, or stolen property. Items can include anything from your couch to your appliances.
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- Accommodations
In the event that your home is no longer livable because it’s been damaged, there are policies that will cover the cost of your accommodations elsewhere while your house is being repaired.
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- Legal fees
If a guest or a person that doesn’t live in the house is injured within your property, you are liable for their accident. However, some policies will take on part of your liability and pay for the medical bills of the injured person.
Q: How much insurance do I need for my property?
The amount of insurance you need depends on the value of the property. Ideally, your policy should cover the entire dollar value of the home. When choosing the right insurance provider, it is also a good idea to take stock of the value of your belongings.
Q: Do I need insurance after paying off my property?
As mentioned, you’re not required by law to insure your house. This is doubly true if you have already paid off your home, or are looking to buy in cash. However, insurance is always a good idea for any hefty investment. It is a small price to pay for your peace of mind.
Do you have more questions about buying a home in La Cañada, Flintridge, and neighboring areas in Los Angeles County? Don’t hesitate to give me a call.
I’ll walk you through the process, and together, we’ll find the home that suits you best. Call me, Kathy Seuylemezian with Coldwell Banker Realty, at 818.949.5205 or send an email to kathy(at)imuragent(dotted)com. Let’s find your dream home in La Cañada today!