FOUR FORMS OF PROTECTION!

December 28th, 2007

When you purchase an automobile, what’s the first thing you take care of before driving around town? You’ve got to get insurance, of course. It’s no different when you’re ready to buy a home, but you have some more options.

First, understand that there are four basic types of insurance, some required, some not. Title insurance protects you in the event that title to the property is found to be in question. You definitely want to purchase title insurance as part of the closing transaction.

Homeowner’s insurance provides coverage in cases of theft, damage and liability. Your lender will require this policy, so this is another absolute necessity.

Flood insurance may or may not be required, depending on the location of your new home. The federal government provides this policy to cover replacement value of the home and its contents. Consult with a local real estate agent to determine necessity and restrictions.

Finally, a newer and very popular form of “insurance” is the home warranty, often provided by the seller as “peace of mind” for the buyer. These are often one-year policies that cover repairs to systems and appliances, and more details on this are coming up in my next column. In the meantime, consult with a REALTOR® if you have any questions or concerns about any of the insurance policies addressed here.

If you need information to assist you with your real estate decisions, call me at 1-800-724-7149 or e-mail to donkingsley@kingsleyrealestate.com I will be happy to share our knowledge with you at no cost or obligation.

Don Kingsley, CRB, CRS, ABR
REALTOR©

Visit the Kingsley Real Estate website for more tips on buying and selling!

Entry Filed under: Buying A Home, Real Estate Tips