subject: Quoting Home Insurance Orange County Before Your Escrow Closes [print this page] If you are in the process of buying your first home, chances are you are going through an emotional roller coaster of excitement, fear, anxiety and confusion. While the process of buying a new home involves preparation and education of home financing, many first time home buyers overlook the importance of quoting and comparing home insurance Orange County policies. If your home is being financed, which is more than likely the case, your lender will require that you bind a home insurance policy effective the estimated date of close of the home. If you fail to prepare for the close of your escrow, your home's closing could be delayed. To avoid delays and to make the closing of your home as streamlined as possible, begin quoting and comparing homeowners insurance well in advance. Know what coverages your lender will be concerned with and which coverages you should look into closely for your protection.
The Dwelling coverage of your home insurance policy is the main thing that your lender is concerned with. The lender wants to make sure that property they have a financial interest is adequately covered from the time escrow closes. Because of this, they may require a minimum amount of dwelling coverage based on their assessment of how much it will cost to rebuild the home if it were deemed a total loss. The dwelling coverage requirement will vary from the amount financed with the lender and from the homes sales price. Because the value of the home includes the value of the land, the cost to rebuild will be lower than the home's sales price. Inquire with your lender how much coverage is required and bind higher limits if you do not feel these requirements are sufficient. The lender will not be concerned with your Personal Property Coverage or other limits including Medical Payments to Others. These coverages are all things you should research and calculate on your own. Personal Property Coverage will pay for your belongings if they are lost, stolen and damaged in a covered loss. It is important to remember the deductible you choose pertains to both the Dwelling and Personal Property coverages. Your home insurance Orange County policy will only pay for a loss if it exceeds your policy deductible. While higher deductibles will lower your annual premium, be sure you choose a deductible your lender will approve and that you can reasonably afford.
Compare a number of different policies with reputable insurers in the Orange County area. Always choose an insurance provider with quality coverage options and superior claims and customer service. By researching and quoting your home insurance policy early, you will avoid rushing and binding coverage that does not offer you comprehensive coverage.
by: Fern Baptiste
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