Globella Buyers RealtyResources > Hazard Insurance Tips

What Home Buyers Need to Know About Buying Hazard Insurance

 

When you buy a home, you should also buy hazard insurance (also known as homeowners insurance). The idea of hazard insurance is that if your home burns down, or is badly damaged from a plumbing leak, or experiences a significant loss from a home burglary, etc., then your insurance will help cover those losses. There are different types of hazard insurance policies, and if you are getting a loan for your purchase, your lender probably won't give you the loan until you prove that you have whatever insurance policy  the lender requires. Talk to your loan officer about what type of policy you are required to have.

Is the Home Insurable? An important thing to find out before you remove your investigation contingency is whether or not the home is insurable. Some homes in San Diego County are literally not insurable for various reasons. Some homes might be considered to be a riskier proposition by some insurance companies (depending on the home's proximity to fire hazard areas, flood zones, etc.), and therefore cost more money. You won't be able to get a good loan on the property if you can't get insurance. In some rare instances, you may not care about insurance (for example, if you are independently wealthy and you want to live on an eroding bluff with a 180 degree ocean view, whatever the cost may be). For the rest of us, insurance is an important part of the home purchase.

It is important for you to know that each insurance company is different when it comes to rates, areas that they insure, and the types of insurance that they offer. If the first insurance agent you talk to gives you bad news, you very likely will receive different news when you call around to other companies. It's also important to know that much of San Diego is now considered to be in a High Fire Hazard Area (since we've had some big fires in recent years). I recommend that you interview three or more insurance agents and get detailed quotes from each.

Who Should I Call? First, call your current insurance agent (whoever you use for your auto insurance, for example). He or she may be able to offer you a discount for adding a new policy to your account. Next, call around to other major insurance companies that have offices in your area (Farmers, State Farm, etc, etc.). Lastly, call an insurance broker or two. By having multiple conversations with different insurance agents, you will end up making a more informed decision. 

What Should I Ask About? First, tell them you are buying a home and you need to get a quote for hazard insurance. Tell them the home address and ask them if they can offer insurance for that property. Ask the insurance agent to send you a list of what the policy covers and how much it costs. Make sure that the insurance agent tailors the policy to your specific needs and the specific features of the home. If you have expensive pieces of jewelry, art, etc. be sure to have those covered. If the home has an updated kitchen, flooring, etc. be sure that those are included in your policy. If your home burns down (which is highly unlikely, but if it does) you want your insurance company to give you enough money to build the home exactly the way it was. If your policy is not set up correctly, then they will not give you enough money (and that just defeats the purpose of having insurance, right!?). The more questions you ask, the more informed you will be about choosing the company and the policy to go with. I also encourage you to ask about adding earthquake insurance. There are different opinions out there about earthquake insurance. Some don't want to spend the money. Get informed and make the right decision for yourself. If your home is located in a flood zone, you may need to also purchase flood insurance. You may wish to purchase flood insurance if your home is located on a slope or in an area in which you think could possibly allow water into a portion of your home during a heavy rain storm.

Also ask whether or not the insurance policy will be subject to a follow-up inspection and what that entails. Some companies require an on-site inspection by one of the company's representatives, and others do not have that requirement. This may or may not be a bad thing, but it's good to know about it in advance, in case you have any concerns about this.

Some people like to bundle all their insurance products with the same company to receive discounts. It is true that many companies offer discounts when you have more than one policy with them. Now may be a good time for you to explore what sort of savings you can get by putting all your insurance policies with the same company. Be sure you are comparing apples to apples (same coverage, same deductibles, etc.) when you do this! It may take you an extra few hours to consolidate, but it could save you a lot of money over the course of the next several years if you take the time to figure it out now.

As usual, if you have any questions during this process please contact me right away. As your exclusive buyer agent, I'm here to help you through the whole buying process!

---------------------------------------------------------

Justin Gramm is the founder and principal broker of Globella Buyers Realty, your San Diego Exclusive Buyer Brokerage. 

Exclusive Buyer Agents do not list homes for sale and never represent sellers. They have no "inventory" to try to sell you. They can represent you in purchasing any home. They are specialists at representing buyers only on the buyers' side of the transaction. Exclusive Buyer Agents work to get buyers the best price and terms when they buy a home.

If you have excellent credit and plan to buy a home or condo in San Diego County within 90 days, contact Justin Gramm to hire an agent on your side of the transaction. More about Justin Gramm on Call Justin at (858) 437-2662 or  E-mail.

Globella Buyers RealtyResources > Hazard Insurance Tips

Justin Gramm, Broker
Globella Buyers Realty
Ph: 858.437.2662Fax:858-228-9801
CA 92115 US
 CA BRE# 01714813
www.Globella.com
What is an EBA? When to Hire an Agent Buying a Home in 2020 How My Schedule Works Buyer Strategy Session How I Work When to Buy? Part 1 Globella Questionnaire About Globella Why Hire Justin? Buyer Representation How I Get Paid Helpful Buyer Links Location = Lifestyle Buyer's To-Do List Relocating to San Diego About Justin Gramm VIDEO: Meet Justin First-Time Homebuyers 10 Best School Districts How to Write an Offer Paperwork North Cty vs. San Diego What is Dual Agency? New Construction Testimonials/Reviews Retiring in San Diego About Buyer Agency The Informed Buyer Dog-Friendly Buildings Paperwork Explained Home Buying FAQ Help for Luxury Buyers 3 Investing Strategies The Dual Agent Trap Buying a Condo 5 Reasons to Rent Buying Foreclosures 1031 Exchange Tips The Globella Difference Accredited Agent (ABR) Avoid Moving Twice 5 Reasons to Buy Agency 101 Preapproval Questions Agency Disclosure Negotiation Expert Privacy Policy Second Home Expert Agent Ethics Choosing a Lender Buyer Agent Interview Foreclosures Buying a New Home Hiring an Inspector Negotiating Your Loan Top 1% of Realtors Buyer Services Avoiding Wire Fraud Termites! Get a Home Warranty Hot vs. Cold Market Hazard Insurance Tips Checking HOA Health Earthquake Insurance Condo Litigation SD Weather Tips Property Taxes Cost of Granny Flat Vesting as LLC or Trust Buying with a VA Loan Investor Services Buyer Resources Code of Ethics About the Name Contractor List Moving Checklist The Grande: Downtown Condos Seven on Kettner Treo Beech Tower Citymark at Cortez Hill Park View Gaslamp City Square Watermark 235 on Market Atria Brickyard Columbia Place Harbor Club Island Lofts Angove Lofts Jacaranda Studios Rowhomes on F Bella Via Columbia & Fir Lofts Date Street Townhomes Ecco Lofts Finestra Lofts Hawthorn Place Kettner Rowhomes Lusso Lofts The State The Waterfront Victorian House Aperture Preparing a Short Sale Offer How A Short Sale Lender Analyzes an Offer Short Sale Lenders Approval Options Different Short Sale Lenders Act Differently Loss Mitigation vs. Foreclosure Departments Short Sale Defined The Ideal Short Sale Seller Why Do Banks Even Consider Short Sales? Some Listed Short Sales Are Not Closeable La Jolla Del Mar Point Loma Rancho Santa Fe Pacific Beach Coronado Downtown San Diego Contact Us Communities Buying Short Sales FAQ International Buyers Luxury Buyers First-Time Buyers Vacation-Home Buyers Move-Up Buyers Downsizing Buyers 1031 Exchange Buyers Luxury San Diego Real Estate Fair Housing Investment Buyers San Diego Photos New-Home Buyers Testimonial Chuck Smith Testimonial Downtown Steve What's Exciting! How We Work Short Sale Testimonial Investing Buying a Home Footer Links Local Restaurant Reviews SD Restaurant Reviews Things to Do in SD SD Eatery Reviews Paperwork How We Work About Our Name How We Get Paid Before Writing Offer Before You Write an Offer Before Writing an Offer Del Mar Buyers Agent 92101 Buyers Agent Loan Doc Signing Tips Testimonial - Samantha Z. How I Work Review from Melanie & Michael Review from Erica M. Buying in 2014 Spring Home and Garden Show 2014 at Del Mar Fairgrounds Review from Daniel E. Review from Steve and Chi Buying in 2015 Spring-Home-Garden-Show-San-Diego-Del-Mar-Fairgrounds Buying a Home in 2016 Review from Michael I. Review from John and Wendy Review from Allison H. Review from Frank S. Broken-Landing-Page San-Diego-Spring-Home-and-Garden-Show-2016 Your Ivy at Carmel Valley Exclusive Buyer's Agent Your Sea Cliff Exclusive Buyers Agent Your Avery Pointe at Veridian Exclusive Buyer's Agent Your Lanai in Carlsbad Exclusive Buyer's Agent Your Pacific Gate San Diego Exclusive Buyers Agent Your SummerHouse Carlsbad Exclusive Buyers Agent 2016 San Diego Market Your-Park-at-Bankers-Hill-Exclusive-Buyers-Agent Your Aura Exclusive Buyers Agent San Diego Buyer Agent Review from Mary R. San Diego Buyer Agent Review from Dan B. Your Estates at Del Sur Exclusive Buyers Agent San Diego Buyer Agent Review from Ken and Cindy Three Reasons to Buy a Home in Hillcrest, San Diego Three Reasons to Buy in Bankers Hill San Diego Your Elms at Carmel Valley Exclusive Buyers Agent When to Buy? Part 2 San Diego Buyers Agent Review from Kevin C. Three Reasons to Buy in Encinitas San Diego San Diego Buyer Agent Review from Natacha S. Is Fall a Good Time to Buy a New Home? Your Elms at Carmel Valley Exclusive Buyers Agent Your Canterra Exclusive Buyers Agent Three Reasons to Live in Normal Heights, San Diego San Diego Buyer Agent Review from Renaud P. Buying a Home in 2018 Your Estancia at Cielo Exclusive Buyers Agent Your Upper Cielo Exclusive Buyers Agent Three Reasons to Buy a Home in La Mesa Your-Cottages-at-St-Cloud-Exclusive-Buyers-Agent Your Harmony Grove Exclusive Buyer Agent Three Reasons to Live in Kensington, San Diego 8 Home Maintenance Tips for Spring Federal Interest Rate Hike and San Diego Homebuyers Review from Stewart H. Review from Roland M. Review from Duane and Nancy Review from Natacha S. Review from Shandi and Michael Your Savina Exclusive Buyers Agent Your Escaya Exclusive Buyers Agent Your Terraces at Robinson Ranch Exclusive Buyers Agent Your Signature Exclusive Buyers Agent Your Garrison Landing Exclusive Buyers Agent Review-from-Joseph-C Review from Kara S. Review from Martin and Jackie 2018 Market Update Three Reasons to Live in South Park San Diego Review-from-Adam-W. New Granny Flat Law in San Diego Why Buy at Civita Review- from-Randy-F. Review-from-Oline-C Buyer's Privacy Rights Review from Alex M. Three Reasons to Live in Tierrasanta Review from Greg C. Review from Kenjie S. Review from L.T. Review from Mike L. Sandicor Statistics Videos Market Statistics Request a Buyer Strategy Session / Interview VIP Home Finder Home Investigation Tips Free Buyer Reports Free Investor Reports Welcome Subscribe Site Map