Raleigh Homeowners Insurance – A Must!
As a buyer, unless you pay cash for your home, you will need to have proof of a valid homeowner’s insurance policy at closing. The bank requires this because the policy will protect both your investment as well as theirs!
What do these policies protect?
Casualty: The most common hazard insured against, of course, is damage due to fire. A homeowners policy may cover losses due to other hazards (for example, wind and hail) but it is important that you determine precisely what is–and is not–insured against. If you home is built in a flood-prone area, you must secure a separate flood policy.
Liability: This is to protect you against lawsuits resulting from injuries that occur to visitors or guests in your home. The cost for this coverage, to a large degree, is based on the limits (in dollars) of coverage. Secure as much as possible in order to protect your assets.?
Personal Property: While the casualty or hazard insurance covers the rebuilding of the house structure, personal property coverage protects what is inside the home. Coverage here will vary widely, so it is important to be clear on exactly what the limits of the coverage are. It is important to determine if it covers replacement cost of an item (its cost today) or if the value is determined through its original cost or depreciation.
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