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What You Should Know

What You Should Know About Home Owner’s Insurance

Insurance policies can differ depending on the amount and types of coverage you may want or need. Because of these variables, it can be hard to comparison shop and easy to purchase too much insurance.

To help you acquire the best policy, have your agent of The Buyer’s Agent of Nashville & Middle Tennessee get an initial quote from one reputable insurance company. Then, your agent should obtain at least four quotes from other insurance companies, applying the same coverage requirements. Using a nationally recognized company may also help protect your interests.

You should call the two best bids and inquire about any extra coverage you may want for special items such as furs, jewelry, computers, etc. By comparing these bids, you should be able to find the best arrangement.

Questions to ask an insurance agent:

How long has your company serviced the State of Tennessee?
Often companies new to the state are more completive for the first 4-5 years, until they have reached a certain level of policy holders in that state.

How much coverage should I carry on my home or property for fire, wind, or storm damage?
Generally, you are not required to carry more fire, wind, or storm damage coverage then the value of the improvements (the structure and contents) of the home or property. Make certain you have guaranteed replacement cost coverage.

If something happens to my home and I cannot live in it, will the insurance cover my cost of alternative housing?
Even if you cannot live in your home because of damage, you will still have to make the mortgage payments. You may want your insurance to cover the cost of your living arrangements while repairs are being made.

Does the policy you are quoting include guaranteed replacement cost?
Be sure that it does!

Will I receive a discount if I have my automobile insurance and home owner’s insurance with the same company?
Some companies offer considerable discounts while others offer very little.

When was the last time your insurance company passed a general rate increase in this area?
If it has been several years since the company has increased its rates, you may see a significant increase in the next couple of years. Ideally, the lowest cost insurance carrier will have just had a rate increase.

If something happens to my home or property, whom does the insurance company pay?
Usually, it will pay any mortgage holder first, then will pay you the remainder.

If the seller refuses to move out of the property until two weeks after closing, will my home owner’s insurance be in effect during that time?
If your contract allows the seller to retain possession for any length of time after closing, you should obtain rental dwelling insurance and require the seller to reimburse you for the cost of this insurance.

Often referred to as “hazard” insurance, a home owner’s insurance policy protects both you and the lender. It should cover not only the dwelling and its contents from fire, storm, or other damage, but should also include liability insurance in case of accidents on your property. You may need other types of insurance (such as earthquake or flood insurance) depending on your area.

Very few home owners ever shop for insurance and end up being “over-insured.” It is important to shop for rates, which can vary tremendously from location to location.

The Buyer’s Agent of Nashville & Middle Tennessee will help you throughout your home buying process including shopping for, and obtaining, your Home Owner’s Policy.

Have Questions? Email and agent directly.

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