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 http://staging.crownmortgagecompany.com/resources/crown-insurance-agency/. If you have any questions, please feel free to contact me at 708-346-8777.