Different Ways To Insure Your Home: A Primer From Real Estate Expert Steve Schneeberger

When buying a Twin Cities home you want to makes sure that you are protecting your largest purchase. There are several things that you can do to make sure you are adequately protecting your investment. Here are a few things you are either required to have or need to consider.

First, you need to have homeowner's insurance lined up before closing. This covers fire, theft and liability.   Lenders want to make sure that their investment is protected and will make it a requirement to close. Typically, buyers contact their current insurance carrier that they have automobile coverage through, but coverage can be obtained anywhere. Many times they will offer a multiple policy discount.   If you have specific items you would like to add you can talk to your insurer about customizing a plan.

Along the same lines you may need to consider flood insurance. This will depend on where your home is located and if it is considered to be in a flood plain. Your agent can verify this for you. If it has been designated as such, your lender may require it. The coverage levels vary so it is best to talk to your carrier about this option as well. After the Katrina disaster, this insurance has become a hot topic of concern.

Next, you will want to look at title insurance. This is a one-time fee paid at closing that protects your home against title issues. It is relatively inexpensive and is well worth the money for what you get.

Home warranties are another area that you should look into. This coverage is a voluntary policy that you can pay for at closing. On new homes your builder will typically cover concerns for the first year. But what if he goes out of business? Then you will be left with no one to go to. On resales, there won't be anyone to call so you would be left taking care of concerns on your own. This coverage is issued in one year increments and covers the major components of the home. There are additional areas that can be added- each for a flat fee. If you decide that you no longer want it you simply do not renew it and it expires.

If you want more extensive information on protecting your home, contact Twin Cities real estate professional Steve Schneeberger with Edina Realty at 612-581-7313.