When it comes to the most important things in life, insurance can be used to protect them. Health insurance protects individuals from high costs associated with maintaining one’s health and car insurance protects individuals from costs associated with liability derived from accidents. Homeowners insurance provides the same protection for homeowners.
Many homebuyers wonder if it is really necessary when purchasing New Jersey real estate to speak with an insurance agent prior to purchasing a home. Since evidence of insurance is needed to close a mortgage, the answer is an emphatic yes. Without insurance in a financed sale, closing can not take place. The home buying process is complicated and overwhelming and obtaining information from every avenue possible before beginning the purchase process will be helpful. Here are a few of the biggest reasons an insurance agent should be consulted during the home buying process.
Review Needed Coverage
Before signing papers locking the sale of a New Jersey real estate investment, discussing how much liability protection is needed is a must. Homeowners insurance not only protects the home itself, but everything inside the home, as well as a homeowner’s liability. An insurance agent will go over these details carefully with a home buyer, ensuring they understand what coverage will be beneficial. Insurance agents will also look carefully at the location, the yard and any potential exposures to be protected against. Thorough insurance coverage will give peace of mind that, in the event of a disaster, a home buyer is financially protected.
Help Prepare for Total Loss Situations
While we hope these situations never happen, if a catastrophic event were to occur, homeowners need to know that their home would be covered in the event of a total loss. A homeowner’s policy is not a comprehensive policy as flood and earthquake coverage is not typically included. An insurance agent will be able to identify if a home is in a flood zone and provide a quote with appropriate limits. An insurance agent will also be able to obtain a quote for an earthquake policy should a mortgage company require it, or if a homeowner is interested in it. Insurance agents are capable of providing information on and quotes for policies that would be applicable for a myriad of potential losses.
Insurance Agents can Save Home Buyers Money and a Massive Headache
Insurance agents can be a wealth of knowledge and can even save home buyers money. If a home is equipped with disaster prevention tools such as smoke alarms, sprinkler systems, deadbolts, security systems and more, homeowners could qualify for discounts on the homeowner’s insurance policy. They may also be able to obtain further discounts for homeowners by packaging home and auto insurance on the same policy. Additionally, independent insurance agents have relationships with many carriers and can shop a future homeowner’s policy to several carriers and obtain the most competitive pricing and coverage.
When you work closely with your Gloria Nilson and Co. Real Estate agent, we can also assist you with the many difficult questions that arise when you purchase your New Jersey real estate dream home. Do not navigate these real estate waters alone, let an insurance agent and realtor guide the way.