The team at RCM understands that most people prefer not to think about the implications of homeowners insurance. Nonetheless, it is of the utmost importance that all homeowners are insured. Not only that, but it’s the law!
The major types of homeowners insurance are title insurance, homeowners insurance, flood insurance, and home warranties. At RCM, our team of professionals will help you navigate each scenario and determine exactly how to enact your plans. Let’s explore each type of homeowners insurance individually.
When you close on your new home, with a one-time payment, title insurance will protect you from fraudulent titles. This includes “lenders” policies, which guarantee buyers the full mortgage value of the home, and “owners” coverage, which insures an owner a specific amount of the purchasing price. In summary, title insurance will protect your mortgage and the dollar amount of your down payment.
This is a specific, quantitative insurance that covers fire, theft, and liability thereunto. “Homeowners policies” are mandatory for lending institutions. They also entail a wide array of miscellaneous items, sometimes including husband and wife wedding bands, office and domestic furniture, and any items used for home office operation. “Homeowners insurance” simply cannot be overlooked.
This type of insurance is typically mandatory in areas that are considered at risk for potential flooding, usually due to nearby streams, rivers, or susceptibility to relentless rain patters. Flood insurance is issued by the federal government, and it can grant up to $250,000 coverage for a single-family home, and $100,000 for the actual contents of your home. Your RCM realtor can help you determine whether you’ll need – or want – to have flood insurance.
If you are buying a home, especially one that is under construction or still being built by a contractor, you’ll want to know that the contractor will fix any structural problems after the building is finished. Home warranties exist for this very reason. If the builder refuses to make the repairs, or even worse, if they go out of business, your home warranty will still be valid. Most home warranties offer itemized areas on several forms of safeguarding: problems in the first 365 days; plumbing, wire, and other mechanical issues for 2 years; and foundational or framing (all structural) deficiencies for upwards of a decade.
A warranty for an existing home will usually consist of yearlong incremental agreements. Typically, the seller will purchase the home warranty to reassure the buyer. While limited to the terms of a specific contract, home warranties can be one of the most reassuring forms of homeowners insurance.
RCM National Realty is an exclusive boutique real estate company. Our mission is to help clients customize their buying or selling experience to best fit their families’ schedule and housing needs. With our diverse group of agents, it is easy to find a qualified professional who understands your market of choice. Let RCM National Realty open the doors to your real estate dreams!