The Importance of Home Insurance



The Importance of Home Insurance


     A topic that is always touched-upon in the earliest stages of my mortgage consultations is  Homeowner InsuranceThis insurance is a requirement for Closing and proof of the mortgage company or bank being shown as  Mortgagee  must be proven ahead of time.  A receipt and cover-sheet proving payment of the first year of Homeowner Insurance is required prior to Closing Day.   

Contact Stringham Insurance for all your Insurance needs!     And lately there's been a new twist added ... Underwriters are requiring the "true" insurance cost as a condition of the Loan Approval(Contact me for more info and detail regarding this.)

     Any mortgage company or bank will require that your Homeowner Insurance is, at minimum, the dollar amount you are borrowing on the property.  In other words, enough to cover the  Principal amount  of your mortgage.  That way the Mortgagee's interests are covered, should loss occur. 

     But beyond that ... as a homeowner or property owner, how much policy do you need?  And what do you need your policy to cover?

     For this explanation, I defer to the professionals I have entrusted my own Homeowner Policy with for over 30 years, Richard and Mary Ann Stringham  of  Stringham Insurance Agency  in Mokena, IL.

     Richard Stringham says:  
     "Most homeowner’s insurance companies require that your amount of coverage equal the actual replacement value of your home - this means the actual cost to rebuild your home.  This can be very different from the market value or actual purchase price of your home.
  
        Homeowner’s policies, including renter’s and condo-owner’s policies, provide coverage for your personal property.  This coverage is usually issued on a replacement cost basis.  But we caution you!  There are restrictions and limitations on certain types of personal property. These include, but are not limited to, jewelry, furs, cash, silverware and goldware, guns, securities, bonds, business property, and certain other types of property as well.

       Homeowner’s policies provide for additional protection called Loss of Use.  This provides an additional amount of coverage made available to cover the additional costs of living associated with a loss that forces you out of your home."  

     There are more things to consider when seeking Homeowner Insurance.   And I recommend to all my clients that they seek-out their own trusted insurance professional  (or a referred insurance professional)  to discover and discuss those things in-depth ... well in advance of their Closing Day.  This is my advice whether buying or refinancing a property.  The same advice is offered to those purchasing  investment properties.  

     What I see occur all too often is that this very important task is taken care of as an after-thought or done on the fly without the proper amount of time or attention being given it.  As with any service and product, there are differences in quality of coverage, policies, service, and advice.  And sadly, I'm betting at the time that I write this, that the truth of my statement could be backed-up by way too many Hurricane Sandy victims.  

     For most homeowners, their home is the largest, most personal, and most valuable asset they will ever own.  That fact demands that they protect not only their property and family belongings ... but their emotional attachment to the property too.  A loss can be devastating in so many ways.

     So again, I strongly suggest that if you are in the process of buying a home ... or it's been awhile since you had your home and Homeowner Insurance policy reviewed ... take the time.  Don't put it off.  Call your insurance professional now while you're thinking of it.  Or  Contact me, if you're in Chicagoland, and in need of an  insurance agency  referral.

     The Importance of Home Insurance cannot be overstated or overstressed ...  




     *  Hoping to buy or refinance a home in  Will County  or elsewhere in the Chicagoland area?  Contact me!  I'll put my 35+ years of mortgage experience, knowledge, and expertise to work on your behalf immediately.
     I can be conveniently found at the following:
Direct:  815.544.2280
Cell/Text:  708.921.6331
eFax:  815.544.2281    Skype:  630.219.1316
318 Alana Drive, New Lenox, IL  60451

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