Owning a home and living in a great community like Hunters Creek means that you will have homeowners insurance – so called “hazard insurance” – to protect your property, you and if applicable, your lender.
But, when you speak to most homeowners they don’t even understand what their policy covered or what many of the terms mean. Of course the very best advice that can be given is – READ YOUR POLICY!
Now, I am not an insurance agent, but I can tell you a little about homeowners insurance so you can understand more. This is particularly important if you are a first time homebuyer in Hunters Creek.
Remember that buying a home is often one of the largest purchases you will ever make in your life, so naturally you want to protect your home and your investment.
If you have been a renter in the past you may have been required to carry renters insurance which is a basic place than often covered property losses, damages in case of a fire or an accident where you, the renter is at fault. But now as a property owner a homeowners hazard insurance policy needs to cover much more.
Thing of your home in Hunters Creek as not just a safe place for your possessions – clothes, TV’s, jewelry etc but also as a home for other more mundane items such as carpet, roof shingles, kitchen cabinets, furniture, doors, ceilings and more – I think you might get the picture! Now, you as the homeowner are responsible for EVERYTHING!
Homeowners insurance provides you with broad coverage for losses that can arise while owning or renting out your home – like damage to your personal property, theft and vandalism, and liability coverage for accidental injury to another person or property. After a disaster such as a fire or, perhaps a hurricane or tropical storm (sometimes common here in the late summer season!) or even a tornado, your homeowners insurance will be the lifeline to getting life back on track as repair costs rack up fast!
Your annual premium – which if you have a mortgage on your Hunters Creek home will often be taken in escrow each month – varies for your home depending on several factors including local crime rates, wildfire risks, value of your home, the code standards your Hunters Creek home meets and more.
What about flooding? Flood insurance is a separate policy that is required in certain areas, your insurance agent will be able to advise you, or you may know at the time of purchasing your home if you are in a floodplain and in which case your lender may require flood insurance to be purchased.
What if you have to claim? Similarly to owning a car and having car insurance you will have a deductible to pay if you make a claim. This amount ranges from a few hundred to several thousand dollars. It is often a set amount such as $500 or $1000 but can be a percentage of the value of your property such as 1% or 2%. There may often be a separate hurricane deductible which could differ from the regular deductible. So if you make a claim for say, fire damage of $25,000 and your deductible is $500 then you should only pay the deductible amount. Of course each policy varies so make sure to talk to your insurance agent.
Hopefully this article has enlightened you to understanding more about your homeowners insurance coverage and if you are a first time homebuyer, that it has given you some helpful knowledge to go ahead and comfortable move foreword with the purchase of a Hunters Creek home!
If you are looking to sell your home in Hunters Creek or are a buyer who is looking for a perfect home in Hunters Creek then contact us today for professional real estate assistance.