Insurance
Insurance
Prior to closing, you MUST be able to show proof to your lender that you have obtained adequate insurance on a property with improvements. There are so many different types of insurance policies available that it would be impossible to cover them all in any detail. It does pay, however, to shop around to obtain the best possible price and terms. You may wish to investigate the difference between simple coverage and actual replacement cost coverage. Replacement cost coverage costs a little more, but the coverage escalates with the value of the home. This could be a significant advantage in the future. Homeowners policies do not usually cover damage caused by rising water, and your lender may also require that you carry flood insurance on the property. If flood insurance is not required by the lender, it is still wise to purchase it, and it is relatively inexpensive. As we are located in an area which may be affected by tropical weather systems it is a prudent measure. Do not wait until the last minute to begin researching your home insurance options.