Monday Real Estate Market Myth: Home Insurance

Myth: A buyer does not have to purchase home owners insurance when purchasing a house.

FALSE: Every lender require homeowners insurance when a buyer purchases a home, in order to protect the property and all the assets from harm, burglary, and natural disasters. Although buyers can determine how much and the type of coverage they want, government programs are now watching the insurance companies on their quotes.  This year home insurance is expected to rise 5%, which puts the national average over a $1000 premium according to MSN Money. Homeowners insurance is on the rise across America because of the costs associated with natural disasters.  Oklahoma and Kansas coverage has changed and most insurance companies do not cover roofs due to high winds or tornado, and some insurance companies are not even insuring parts of Texas.

When a buyer looks for home insurance or thinking about switching to a lower premium or company, he or she should look around a multiple companies and really compare the terms.  Also it might be a good time to review a homeowners current policy, as it could change at a renewal period.  If you are thinking about switching or need references, please feel free to contact me at Kristen Jurevich- 831.635.6719.

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