subject: Fathoming the Property Insurance [print this page] Fathoming the Property Insurance
By definition, property is something you own or rent, usually associated with real estate. Insurance usually comes in the form of an insurance policy which will guarantee compensation against loss by fire, windstorm, theft of personal property and physical damage. If you own real property, which can take the form of a home, one to four units, rentals or any type of commercial business property and received a mortgage loan from any financial entity, you are required to have property insurance. There is no way to get around this statement unless you pay cash for the property eliminating the mortgage aspect. Even then, no sane person would own property with or without a mortgage and not include property insurance protection. It is not necessary for a person to own real property to apply and receive insurance. Most, if not all, insurance companies offer a renters protection policy covering personal property and personal liability when renting a home, condo or apartment. If you suddenly become a landlord and an annuitant of rental properties, the first thing on your agenda should be to insure your landlord property insurance protects you against damages done to your property by uncaring tenants. Loss of rental income for any period of time can be pernicious.
Another consideration for this type of insurance would be protection against natural disasters. You know, things like floods and earthquakes. On occasion, a policy to protect your property will not be included in your homeowner's insurance policy and must be purchased separately. Ergo, it might be wise to select an insurance company that will include natural disasters in the original policy so you won't have to pay for extra underwriting and paperwork. Speaking of selecting an insurance company, in this age of computers anyone can select, review and purchase property insurance without leaving their homes. However, it will be incumbent upon you to read all of the paperwork; especially the tiny mouse print disclosures found at the end of the last page of commitment. Learn about AMP Life. Also make sure to visit Aviva Life Insurance policy.
In the final analysis, there are two types of insurance a home buyer needs to receive the ultimate protection from unseen disasters that may occur. If you remember Murphy's Law, "Anything that can go wrong, will go wrong," you'll survive. The first need is the aforementioned property insurance protection. The second important need is a Title Insurance policy which is usually issued at the time escrow is closed. In western states this takes place in title insurance companies. In the east much of the legalities are handled by an attorney. Either way, a title policy is a must. Basically, the policy is not free and must be purchased prior to the closing and transfer of ownership. Title insurance guarantees the property in question to be free and clear of all liens and encumbrances, including liens from government agencies, and that the seller really does have the right to sell you the property. Note: Any cloud showing on the title report and not cleared can put you in harms way. Use common sense and think due diligence.
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