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 https://crownmortgagecompany.com/resources/crown-insurance-agency/. If you have any questions, please feel free to contact me at 708-857-1897.