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Home Warranty and Insurance

what%20to%20consider%20before%20buying%20homeowners%20insurance[1]Home Warranty

Buyers and sellers purchase a Home Warranty service contract to cover mechanical breakdowns due to normal wear and tear of the major systems and appliances in their home. Home Warranties can cover everything from heating and air-conditioning to plumbing and electrical systems. Most home warranty companies offer contracts that will replace your appliance if their technician cannot fix it. Home warranty companies also offer this service contract to all consumers regardless of the age of their home.

Whether you are looking for a comprehensive plan to cover all your major systems, or a limited protection plan to cover kitchen appliances, home warranty companies have plans for you. You can choose a plan that best fits your needs for every household budget.

Sellers often purchase home warranty service contracts because it makes their home more attractive to potential buyers, especially if home systems, appliances and other items are aged. After your closing, buyers shouldn’t come knocking on your door if something fails, but that doesn’t mean they won’t, especially if they feel you didn’t disclose a defective major appliance. A Home Warranty can provide you with peace of mind as your buyers will contact the home warranty company, not you.

Most consumers would agree that their home is their most important purchase. However, you may have a tight budget after coming up with the funds required for closing. With so many of a home’s systems hidden from view, it’s easy to take them for granted until something fails. The last thing you want to do is pay to replace a costly appliance or major system. A Home Warranty is a buyer’s best defense against these unexpected expenses. There are no rules that state who must pay for a Home Warranty. A seller can agree to pay for it during negotiations, or a buyer can purchase it before or after closing.


Home Insurance

There are a number of factors you should consider when purchasing any product or service, and insurance is no different. Here is a checklist of things you should consider when you purchase home owners insurance.

The first thing is to purchase the amount and type of insurance that you need. Remember that if your policy limit is less than 80% of the replacement cost of your home, any loss payment from your insurance company will be subject to a coinsurance penalty. Also, determine the amount of personal property insurance and personal liability coverage that you need.

The second thing is to determine which, if any, additional endorsements you want to add to your policy. For example, do you want the personal property replacement cost endorsement or the earthquake endorsement?

The last thing is once you have decided on the coverage you want in your homeowners insurance policy, you can now decide which insurer you would like to purchase the insurance from. Some people like the idea of purchasing insurance from a mutual company rather than a stock company. Also decide whether you would like an insurance agent to assist you in your purchasing decision or if you would like to buy the product directly from an insurer without the assistance of an agent.

Not all insurance policies are the same. The areas and level of protection offered to your home will vary from policy to policy. As a result the home insurance policies will also vary in price. It’s best to discuss with your insurance agent which home insurance policy fits you best.

Umbrella policies supplement the liability coverage you already have through your home and auto insurance and provide an extra layer of protection. Umbrella policies aren’t just for the wealthy they’re for anyone who has assets that might be at risk if they are responsible for a serious accident. If you don’t have enough liability coverage to resolve a claim or a lawsuit, the person bringing the action might go after your home or your other assets to pay for damage. Umbrella policies cover damage claims that you, your dependents, or even your pets may cause. Umbrella policies kick in after the liability insurance in your homeowners and auto policy runs out. For example, if you have a home insurance policy with liability coverage of $300,000, the umbrella policy will pay claims above that amount up to the limit selected. Most of the risk is assumed under the primary auto or home policy, which is why personal liability umbrella is so inexpensive. You can buy a $1 million or larger umbrella policy for less than $200 a year.