Plan for Life Events:

First Home

Homeowners Insurance

There are many new experiences with owning your first home and Homeowners insurance is one of them. You will be required by your lender to secure coverage prior to closing on your house so here are some important items to know.

The Process

Homeowners insurance is based on replacement cost (not market value or appraised value) and will require you knowing some key items about your home to include:

Square footage
Year built
Updates and when completed to Heat, Roof, Electric and Plumbing
Is there a fire hydrant within 1000 feet of your home
What fire department services your property and how far away is it
If you own a dog, what kind (even if mixed), bite history, age
Features of the interior of your new home

A replacement cost estimate will be done for your home. You are not required to carry the amount of your mortgage by NY law but your lender will be sure that your home is insured for replacement cost.

A quote will be done and if your shopping around price out car insurance as well to take advantage of the discounts on both policies

An application will be required and be prepared to pay the full annual premium in advance. If the subsequent years of insurance will be paid through your escrow account be sure it is setup that way. If not choose a payment plan that is comfortable for you.

A Binder will be sent to your Realtor and lender as part of setting the date for your closing. When your policy is issued you will receive that from your agent or company directly.

Personal Umbrella Liability Policy

A home is for most people their largest asset. Protect it from lawsuits by purchasing an Umbrella policy. This policy will give more total liability protection and ride over the top of your Home and Auto policy. The coverage limits start at $1,000,000 and are rated on your driving record, accidents, number of residences and vehicles. Costs can start in the $150 to $200 range for $1,000,000 in coverage.

Life Insurance

Be sure to update your amounts for any existing coverage. If you are buying your home with your spouse or significant other be sure they will have enough to either pay off the mortgage or continue to live in the home without creating a financial hardship. Term insurance works well for this exposure but should be evaluated to reflect your entire financial picture.

Car Insurance

Discounts are available for insuring your Home and Care with the same insurance company. Also update your limits to reflect your new asset. More is at stake when you own a home so protect it with adequate limits of coverage.