If your buying a home, you’ll probably be signing up for homeowner’s insurance as well. In fact, many lenders will require that you purchase a homeowner’s policy before your mortgage can be approved.
Most homeowner’s insurance policiesnincludenboth property and liability coverage. The property section covers damage to your possessions, home, garage or other structures on your property. It also covers offsite housing if you must move out of your house while repairs are being made. Personal property coverage will usually pay 50% of replacement value, although there may be a limit on such items as jewelry.
Most lenders require that you have Insurance (which is typically based on market value) before you close. Because the market value is a broad figure that doesn’t take specific features into account, chances are it’s much less than what your actual costs would be. Market value is based on such factors as the age and condition of your home, and the value of comparable homes in your area.
If you have any questions about the real estate industry, call me. As your real estate professional, I would be happy to help you with all of your real estate needs.
