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| Home Warranties & Insurance |
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Protecting Your Real Estate Purchase
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The essential idea behind various forms of real estate insurance is to protect owners in the event of catastrophe. If something goes wrong, insurance or a warranty can be the bargain of a lifetime.
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HOME WARRANTIES
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With new homes, buyers want assurance that if something goes wrong after completion the builder will be there to make repairs. But what if the builder refuses to do the work or goes out of business. With resale homes, a home warranty provides security long after a builder warranty may have lapsed.
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Home warranties bought from third party companies
(there are dozens for you to choose from—for an example,
click here) are generally designed to provide several forms of protection: workmanship for the first year, mechanical problems such as plumbing and wiring for the first two
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years, and structural defects for up to 10 years.
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Home warranties for existing homes are typically one-year service agreements purchased by Sellers. In the event of a covered defect or breakdown, the warranty firm will step in and make the repair or cover its cost.
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Insurance policies and warranties have limitations and individual programs have different levels of coverage, deductibles and costs. For details, you may
email us.
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INSURANCES RELATED TO REAL ESTATE
What kinds and how much? There are various forms of insurance associated with home ownership, including these major types: |
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1. Title Insurance
Purchased with a one-time fee at closing, title insurance protects owners in the event that title to the property is found to be invalid. Coverage includes "lenders" policies, which protect buyers up to the mortgage value of the property, and "owners" coverage, which protects owners up to the purchase price. In other words, "owners" coverage protects both the mortgage amount and the value of the down payment.
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2. Homeowners' Insurance
Provides fire, theft and liability coverage. Homeowners' policies are required by lenders and often cover a surprising number of items, including in some cases such property as wedding rings, furniture and home office equipment.
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3. Flood Insurance
Generally required in high-risk flood-prone areas, this insurance is issued by the federal government and provides as much as $250,000 in coverage for a single-family home plus $100,000 for contents.
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Where to Look
We would be happy to introduce you to our preferred vendors—they offer our clients special rates and excellent service and support.
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