One of the most important aspects of buying a home is making sure your investment is properly protected with the right homeowners insurance policy. Before you buy, here are a few things you should know about homeowners insurance, especially if you live in the Coastal Bend.
WHAT IS HOMEOWNERS INSURANCE?
Homeowners insurance steps in to pay for repairs when your home is damaged through no fault of your own — MOST of the time and depending on your policy. All homeowners insurance policies are not created equal. A good insurance broker can help you find the best buy for your money. This is especially important for residents in coastal areas, which are prone to hurricane or flood damage.
KNOW YOUR OPTIONS
If you carry a mortgage, insurance coverage is mandatory. A standard policy should cover personal property, personal liability, loss of use and expenses related to loss of use, additional structures, the home structure, and medical payments related to other people who might have been hurt on your property. Consult with a professional insurance agent or broker to outline your options and costs.
ADDITIONAL COVERAGE
Areas prone to flooding might require an additional flood insurance policy. If your home is located in a Special Flood Hazard Area, you also will need an Elevation Certificate, which determines how high above or below your property sits in the Base Flood Elevation. The Base Flood Elevation is the height of your home in relation to sea level. Each foot your home is below the Base Flood Elevation increases your insurance rates. Homes in low Base Flood Elevation areas have lower rates.
Another additional coverage for many in the Coastal Bend is windstorm insurance, which helps protect your home when wind damage occurs.
KNOW YOUR COVERAGE
It is important to purchase the coverage you need to fully protect your investment in your home. When living in a coastal area, not having the right insurance could lead to a tremendous loss. Study your policy and make sure you have the deductible handy in the event your home is hit by a storm. Also, stay current on your premiums. A late payment could lead to cancellation and no coverage. While your insurance might be rolled into your mortgage payment, any additional policies could require separate payments, so stay aware of all your policies.
Always have a copy of your insurance policy in an easily accessible place. If your home is in a flood area, your policy should be kept in a waterproof bag in an easy-to-reach location. You might also want to store a copy in an offsite location just in case.
To find out more about home insurance and what other coverage options you have, contact a Corpus Christi insurance agent