Homeowners insurance is required by the lender when you are buying a home. If you are paying cash, it's still advisable to protect you investment with insurance. There are things you should know about the policy you acquire.

1. Ask about the exclusions. Most insurance policies don't cover flood or earthquake damage and require additional coverage. Check with your insurance agent so you will be understand the policy and be prepared.

2. Understand the dollar limitations. You may be covered for a risk but different aspects of the policy may have dollar amount limitations of coverage. Be sure you understand if and what they are.

3. Make sure your replacement costs are sufficient. When you purchase a home the policy is usually written for replacement based on the purchase amount. Especially in this market of foreclosures and short-sales, make sure the amount of coverage is sufficient to replace/rebuild in the event of destruction.

4. Find out about the actual cash value. Your replacement costs less depreciation is the actual cash value that you will receive less the deductible.

5. Be aware of the liability limits. Usually your homeowner's policy will cover the liability of injury of others on your property but they do have limitations so make sure it's sufficient to cover your assets.

And, I want to be your REALTOR®! If there is any information you would like regarding relocating to the Austin area, let me know. You can contact me at robin@robinscottrealtor.com, 512.589.7988 or just comment on this blog entry.

Search for homes through Austin MLS
Find your home's value
Buying or selling? Hire an experienced professional. Call Robin Scott, Broker at 512.589.7988.

Like us on facebook!