Asheville Real Estate: Homeowners Insurance for new Home Buyers

Asheville Real Estate
Don't Forget your Homeowner's Insurance !

Asheville Real Estate Mortgage Center: Types of Loans

The Basics

Before you pass papers on that new home, you’ll want to think about protecting your big investment with homeowners insurance in the unlikely event disaster someday comes calling-- be it wind, fire or volcanic eruption. And a good Homeowner's Insurance can handily cover all the interior assets that you home holds and protects, including jewelry, media equipment, furniture, tools, cars, all artwork and other thing you find valuable. Always insure for full replacement value.

The financial safeguard against disaster, including property loss and injuries to third parties, is homeowners insurance. While anyone can legally own a home without it, your friendly neighborhood mortgage lender will no doubt require this coverage for self-protection. An information-list for the things you will need to supply your insurance broker can be found here on my site at Homeowners Insurance, as well as a recommended independent agent who can serve your needs.

Here’s what a standard Homeowner's Insurance policy covers:

Structural damage to the home. Pays to repair or rebuild the home if damaged by any of the disasters listed in the policy (which won’t include earthquake and flood unless purchased separately). Don’t base rebuilding costs on the price you paid for the home, nor include the price of the land when estimating coverage. You’ll need an insurance amount sufficient to rebuild at the going rate of construction in your area. This amount can be estimated by multiplying the home’s total square footage by the square foot cost of local construction-- numbers that can be gathered from building associations, realtors and insurance agents
Loss of personal items. This includes up to 70% compensation for furniture, clothes and keepsakes that have been stolen or lost due to disaster. Keep an inventory of possessions (on video if you’d like) and store it safely off-premises.
Liability. Financial protection against third party bodily injury or property damage you might cause. Court costs and damage awards are usually covered up to the policy limit. This coverage typically begins at about $100,000, but most experts recommend carrying at least three times that amount. Check into umbrella policies. These provide broader liability coverage and higher compensation limits.
Additional living expenses. This coverage picks up your hotel bills, restaurant tabs and other miscellaneous expenses should you be forced to live elsewhere while your home is rebuilt or repaired. But prior to purchasing a policy, take time to ask about time frames and the specific limits of what is and isn’t covered.

Homeowners insurance policy costs are determined by many factors, such as square footage of the house, neighborhood crime rate and how prone your neighborhood is to natural disasters. The level of coverage also makes an impact. Consider these options:

Actual Cash Value. Replaces home and/or possessions minus a deduction for depreciation.
Replacement Cost. Replaces home and/or possessions without a deduction for depreciation.
Guaranteed replacement cost. Pays whatever it costs to rebuild your home the way it was before the disaster.

Strategies for keeping your homeowners insurance premiums out of the stratosphere include purchasing homeowners and auto insurance from the same carrier (they’ll sometimes offer discounts) and raising the amount of money you’ll chip in toward loss. For instance, a homeowner might save upwards of 25% simply by raising the policy deductible from $500 to $1,000. Be sure to ask about other discounts as well.

Condominium Insurance: Condo (or co-op) insurance safeguards your personal belongings and the parts of the building you own against most known disasters - such as fire, lightning etc.

Unlike covering a house, condominium ownership requires two separate insurance policies: One of your own. One provided by the condo/co-op board.

Personal condo insurance policies can cover: Third party injury liability. Property damage possibly caused by you. Loss of personal possessions. Loss of structural improvements. Additional living expenses incurred due to a displacement (detailed in your policy) from your condo that forces you to move out temporarily.
Master Policies (provided by the condo/co-op board) can cover: Liability. Physical damage coverage for areas of the building that you share with neighbors, such as elevators, hallways and the laundry room. Take the time to understand which structural parts of your home are covered by the condo/co-op association and which are not.
Condo owners have other condo insurance coverage available, including: Flood or Earthquake. If you’ve chosen a location prone to these natural forces you’ll probably be required to purchase these insurances separately. Flood insurance is available through FEMA’s National Flood Insurance Program. Unit assessment. Reimburses your share of an assessment charged to unit owners for losses involving common areas of the building. Water back-up. Insures against damage caused by the back-up of sewers or drains. Floater or endorsement. Have a taste for furs and expensive jewelry? You might consider adding this coverage because standard policies generally offer an insufficient theft limit. Umbrella policy. A cost effective way to get broader liability coverage and higher compensation limits.

Choose your insurer carefully. Shop around for homeowners insurance, solicit at least three policy quotes and be sure the company you do business with is reputable and will be around to pay future claims. Contact your state insurance department with any questions.

My personal recommendation is to go with Chubb Insurance. They're completely no hassle when it comes to filing for a claim... no delays, no recriminations nor accusations that generally come from the rest of the Crowd. They will cover everything at replacement value, including all your assets contained within the home. That would include all art work, furniture, jewelry, clothes, kitchen equipment, media equipment, etc. They cost a little more, but in the end they're worth it.

Remember: Buying and selling a luxury home or finding that special piece of Asheville Real Estate with Kathleen Blanchette, a fully licensed Keller-Williams Asheville Real Estate Broker and Realtor, is a comprehensive and thoroughly professional experience in buying and selling Asheville Real Estate throughout the Blueridge and Smokey Mountains, where efficiency, personal regard and concierge services are guaranteed every step of the way. Keeping the Tradition of Integrity..., and a Reputation for Results!

Whether its a North Carolina luxury homes on your own Private Mountain Estate in one of our uniquely designed plush Golfing Communities, Exclusive Gated Communities, Active Adult Communities, surrounding Lake Communities, or a great Condominium, Loft or Townhome, all of Greater Asheville and Hendersonville Luxury Homes are within reach with Kathleen Blanchette. Feel Free to browse the entire website of all available Greater Asheville Real Estate MLS and Western North Carolina MLS, for all Asheville Real Estate Properties, Land Acreage, Horse farms, Investment Properties, Commercial Real Estate, New Home Plans, as well as handy relocation and moving calculators, tips for buying and selling a house, city and school reports, and more. Just call us when you're ready to move ahead!


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