I’m in escrow right now and have to purchase home insurance. Anybody have any recommendations?
love_people_please asked:
I have no idea what I should be looking for and what a home insurance covers. Do I need separate insurance for personal property and flood and a earthquake…?
Sommer Darland
I have no idea what I should be looking for and what a home insurance covers. Do I need separate insurance for personal property and flood and a earthquake…?
Sommer Darland
No, one insurance company should provide a policy covering all of those risks. Flood insurance is sold by the federal government but your insurance company can put that on your bill. Unless you provide the name of a specific agent and/or company, the escrow agency will choose an insurance company, likely someone they have worked with before.
First responder is correct, BUT do you have a car? If so, if your insurer offers homeowners, that could result in a discount to you (multiple insurances same company). Personally I use State Farm. Your purchase price will give the agent an idea of how much insurance you need. You will then go over what personal property is covered–there will be low limits on SOME things (jewelry or such) and if you need more, bump it up. You want to make sure your liability limit is good–what if someone comes to your house and your dog bites him? What if they fall down your stairs? Homeowners also covers some THINGS that could be in your car and get ripped off. You can save some depending on what you set as the DEDUCTIBLE for a claim. Be smart and have a fairly high one as insurance companies a few years ago started getting really uppity about claims and some cancelled folks or shot their premiums through the roof for a legit claim. They seem to have calmed down some, but you never know.
If this is not a new house with a builder’s warranty, consider getting something like American Home Shield in case you’ve got problems.
Enjoy!