Carefully Review Homeowners Policy

Carefully Review Homeowners Policy

Carefully Review Homeowners Policy

In order to get a home loan, a borrower may be required to have a homeowner’s insurance policy in place.

Here are a few tips to keep in mind when shopping for homeowner’s insurance (and yes, you should shop around!):

  • Ask for the A.M. Best Rating of each company you look at.
    • This will tell you how long each company has been around and what they can offer in terms of protection against potential risk.
  • Investigate which companies offer ACV (Actual Cash Value) policies and which ones offer replacement cost policies.
    • ACV policies pay claims based on the depreciated value of the item(s) lost.
    • Replacement cost policies pay the full cost (in today’s dollars) required to actually repair or replace the item(s) to pre-loss condition.
  • Obtain an appraisal every five years.
    • This helps ensure you have purchased the right amount of insurance.
    • If additions are made or you remodel, you will want to revisit and possibly upgrade your plan.  
  • Be sure to include any detached structures such as a garage, barn or shed on the insurance policy.

For more information on Homeowner’s insurance, please visit our website at If you have any questions, please feel free to contact me at 708-346-8777.

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