Property Insurance

What Every Purchaser Should Know…

When purchasing a home, insurance should be a priority. We will address some questions you should ask when obtaining quotes, what you should be looking for when comparing rates and why you should purchase insurance in packages.

Let’s start with homeowner’s insurance.  Most buyers realize they need homeowner’s insurance, but are not sure exactly how or what it covers. Some questions you should be asking when calling for quotes are as follows:

  • Does the policy have open or named perils?  Open means all causes of loss are covered unless specifically excluded while named perils cover only those listed.
  • Are the building and contents covered at replacement cost, meaning losses are not depreciated?
  • Are all reports, including those run on you and the property, being pulled prior to giving you the quotes?  This question is extremely important since some companies will actually write the policy before all reports have been obtained, causing the company to come back and cancel coverage AFTER you have gone to sale!

Once the initial questions have been asked, make sure to compare similar coverage details on all obtained quotes.  Top priority should be to acquire the correct amount and type of coverage to fit your needs.  

Now let’s discuss the flood insurance.  As you probably already know, if you are in a mandatory flood zone, the mortgage company requires you to carry flood insurance, which protects your home from rising waters.  However, if you are not in a mandatory flood zone, peace of mind can be acquired at reasonable, prepackaged rates.  Being in a non-mandatory flood zone does not guarantee you will not flood!

When an agent advises they will be running an insurance score as part of their reports, it means they are trying to place your insurance in a preferred company, which has lower rates compared to a standard company.  Most preferred companies write insurance in packages giving the client more discounts and good standing with the carrier.  Also, with one agent watching your entire account, they can make better recommendations for you as you experience different stages of life.

So keep an open mind and always explore your options – just remember, ultimately it is you who determines how your family will overcome potential losses!

If you would like to obtain a quote from Bonnette Insurance Agency, please refer to our Property Insurance Quote page.