Copy of Buyer Guide - V7

HOMEOWNERS INSURANCE

Homeowners insurance protects your home and possessions against damage and theft and is required by lenders before finalizing your loan. Policies vary and are completely customizable, so it's recommended to get quotes from multiple companies to compare price, coverage and limits. WHY DO YOU NEED HOMEOWNERS INSURANCE? Homeowners insurance typically covers destruction and damage to the interior and exterior of a home due to things like fire, hurricanes, lightning, or vandalism. It also covers loss or theft of possessions, and personal liability for harm to others. WHAT DOES THIS INSURANCE COVER?

Most policies do not cover flood or earthquake damage, and you may need to purchase an additional policy for this type of coverage. WHAT DOESN'T IT COVER?

Many insurance companies offer discounts to seniors, and also to customers who have multiple policies with them, like auto or health insurance. Having a security system, smoke alarms and carbon monoxide detectors can also lower annual premium rates. When getting quotes, be sure to ask each company about their discounts and cost savings options. HOW CAN YOU QUALIFY FOR DISCOUNTS? Rates are mostly determined by the insurer's risk that you will file a claim. The risk is based on your personal history of claims, frequency and severity of claims, past history of claims on the home, as well as the neighborhood statistics and the home's condition. WHAT ARE POLICY RATES BASED ON?

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