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Often used interchangeably, the terms “property insurance” and “homeowners’ insurance” sometimes confuse new homebuyers. Homeowners’ insurance is a specialized form of property insurance. By “property” the insurance industry means anything that you own.
Under that category come homeowners’ insurance and even renters’ insurance. These products cover single-family houses, condominiums and a renter’s contents in the case of damage from fire, storms, water leaks and theft. Some coverage includes temporary accommodation if you can’t stay in your home.
Homeowners’ insurance typically includes a liability component in case someone suffers property damage or accidental injury due to happenings on your property or the condition of your home.
On a side note, homeowners’ insurance (HOI) should not be confused with Private Mortgage Insurance (PMI). Although you pay the premiums for PMI when you utilize a zero or low down-payment mortgage option, the coverage does not protect you or your home. It’s there to protect the lender if you default on your loan. Your investment in the home and any equity you’ve built up, however, is not covered by PMI. Additionally, mortgage lenders usually require that you carry HOI up to a certain percentage of the property’s value. Coverage for your contents is up to you.
For advice and recommendations on homeowners’ insurance coverages, ask your real estate agent.
Being a second generation Real Estate Broker, Eric is a full time Broker/Owner of Century 21 Winklhofer. Growing up in the business Eric knows what it takes to help Buyers & Sellers complete their dream of home ownership.
A Century 21 agent his entire career, Eric loves the fact that at Century 21 they promote and develop unique technology to help his clients! In today’s real estate market having a solid game plan, strategy & being creative is key to having a successful transaction.
Eric is a Century 21 National & Local award winner for his sales achievements! Please feel free to call, e-mail, text or DM him on his social media and Eric will get in touch with you to help make your Real Estate experience a great one!