Home Insurance 101

What amount of homeowner’s insurance is required?

Your homeowner’s insurance policy should cover the cost to rebuild your home. This insured amount may be higher or lower than the actual purchase price as long as it meets the loan requirements. The insurance company you choose can give you an actual quote based on specific information about the property.

How do you know if flood insurance is needed?

Most standard homeowner’s policies do not cover loss due to flood. The law requires that if your home is located in a Flood Hazard area you must obtain flood insurance. If you choose, you can obtain flood insurance coverage even if you are not requires to do so by your lender. The law requires lenders to order a flood hazard determination on all properties securing a mortgage.

What about earthquake insurance?

Again, earthquake insurance is not included with standard homeowner’s policies. If you are interested in getting earthquake insurance, ask your insurance agent about it specifically.