Wellesley Homeowners: Protecting your Assets and Family with Insurance
Call Christine Norcross for more information â€“ cell 781-929-4994 or to research the Boston neighborhoods, visit my Wellesley Real Estate or Newton Real Estate websites.Â Search for homes HERE.
am oftenÂ asked about the different types of insurances that surround
real estate. And while I am no expert on the topic, I do feel qualified
to give an overview and some insight to assist you in asking intelligent
questions to true insurance professionals. So, here it goes:
- Homeownerâ€™s Insurance covers
the replacement cost of the home and is required by lenders to ensure
that their collateral (the home) will be replaced in case of damage. The
amount of the policy need not include the value of the land. There are
variables in cost by company and by the amount of the deductible.Â Many
people include riders to their homeownerâ€™s policy for personal property
(like jewelry) or get discounts because they tie it to their auto
policies, etc. Recognize also that policies vary for owner occupied
homes to second homes to vacation homes to investment properties.
- Flood Insurance
is mandated by the Federal Government if your property is located in a
Flood Zone. Flood Insurance Premiums are used to assist FEMA in
rebuilding areas affected by flooding (like from a hurricane).
Traditionally, â€œacts of Godâ€ have been excluded from many insurance
policies. That was what forced the Flood Maps and mandatory coverages.
(I imagine there is Tornado and Earthquake Insurance Policies as well,
in areas where they are more likely.)
- Title Insurance
is usually split into two policies â€“ an Ownerâ€™s Policy and a Lenderâ€™s
Policy. Both basically insure the same thing- that the owner of record
is the rightful owner and that the liens of record (mortgages, for
example) are the ones that everyone has agreed to. The title company
searches the public records and certifies the title and the liens.
Often, they clear prior liens and handle the transfer of ownership from
seller to buyer with the County Clerk. Additionally, they provide
information about real estate taxes, judgment and bankruptcy searches,
and Certificates of Occupancy and Building Permits.
- Life and Disability Insurances
are something to consider when you own a home. What if the worst case
scenario happens? Depending on your age and health, the cost can be
worth it. There are many types of life insurance (term vs. universal
life insurance, for example) that can accomplish different goals from
paying off your mortgage to planning for retirement. A strong life
insurance professional is as important as a strong accountant. Cheapest
is rarely best. Financially, many are covered in case of death but get
crushed at times of disability. Investigate the costâ€¦.it usually makes
I expect todayâ€™s piece to get you thinking about
what you must have and what you might consider for insurance. Just
scratching the surface. Go get the recommendation of a professional.
Check out cost, sureâ€¦but donâ€™t lose sight of the concept of protecting
your assets and your family.
If you are thinking of selling your
home in the next twelve months, selling sooner rather than later will
probably get you the higher price. However, in 18-24 months, the market
will return to historic appreciation norms.
Call me if you want help with your home purchase. We have a team, Christine Norcross & Partners, at William Raveis and we can help you find your dream home in theÂ Wellesley Real Estate marketÂ â€“ Natick, Newton, Needham, Wellesley, Wayland, Weston and more.
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