Idaho Insurance Options - Do I Need Them?
It can be sorta paralyzing with the countless types of Idaho insurance options available when purchasing your home and you may feel overwhelmed at times. Do you really need them? Yes! Rational vehicle owners wouldn't drive without car insurance, and you shouldn't go without homeowner insurance coverage either.
From title insurance to homeowner's insurance, the central idea behind various real estate insurances is to protect the owners. For this reason, in the event of a catastrophe and something were to go wrong, insurance can be invaluable. So what kind of insurance do you need, and how much is all this going to cost?
What types of insurance do I need?
When you're looking to purchase a home, professionals agree that you should keep these Idaho insurance options in mind.
Main types of home ownership Insurance:
Title Insurance:
A one-time fee paid at closing, title insurance protects owners in the event the title to the property is found to be invalid. This type of insurance includes lenders policies, which protect buyers up to the mortgage value of the property. Owners coverage, protects owners up to the purchase price. In other words, owners coverage protects both the mortgage amount and the value of the down payment.
Furthermore, it can protect you if a contractor or other vendor puts a lien on your new home. A contractor could have up to a year after your purchase date to put a lien on your home. Additional title insurance can cover services gone unpaid by previous owners!
Homeowners insurance:
Insurance that provides fire, theft and liability coverage are called a homeowners policy. Homeowners policies will be required by lenders and can cover an astonishing number of items and issues. In fact, some cases include property like jewelry, furniture, electronics, appliances and home office equipment.
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Flood insurance:
In the event that the home is located in a high-risk flood prone area, your lender will require flood insurance. The federal government can provide upto $250,000 in coverage for single-family homes, plus an additional $100,000 for the home's contents. Contact us with questions regarding which locations will require flood insurance.
Home warranties:
Home warranties cover buyers if something goes wrong after closing on their new home. In the event of a new home build, you'll want assurances the builder will be around to make any repairs. At the same time, what if the builder refuses to do the repairs or happens to go out of business? Home warranties purchased through third parties by the home builders are specifically created to provide several forms of protection. Not only ... but also workmanship typically for the first year of the home. When mechanical problems pop up like plumbing and wiring typically for the first couple years. As well as structural defects usually for up to 10 years.
Home warranties are available for existing homes as well and are generally one-year service agreements. Either buyers or sellers can purchase the buyer a home warranty, depending on your contract terms. In the event of a defect or breakdown that is covered, the warranty firm will step in and make the repair, replace or cover its cost or value. Insurance policies and warranties have many limitations. In addition, many companies will have various levels of coverage, deductibles and costs. Contact us regarding home warranty companies, policies or home builders for specific details.
When should I get insurance?
You should obtain your different types of Idaho insurance options and warranty coverage at the time of closing on the home. Contact us or your insurance company prior to closing. Finally, ask about limitations, costs, deductibles and "endorsements". (additional forms of coverage that may be available)
