Choosing The Right Homeowner’s Insurance

When buying a home using a mortgage lender, you will notice that one of the requirements for the loan is homeowner’s insurance. Although it may seem like a simple purchase, in reality, it can be challenging to find the right insurance to fit your needs.

If you’re looking for homeowners insurance Newark DE, you should be aware of the various options and coverages. It helps to discuss your purchase with a qualfied insurance professional, such as an agent or broker.

Standard Homeowner’s Policies vs. Dwelling Policies

The location, condition and type of structure you’re insuring can play a huge part in the type of homeowner’s policy you’ll need. There are specific policies for condominiums, multi-family residences and single family dwellings. 

While most insurance customers will fall into a standard homeowner’s policy, some difficult-to-insure locations and structures may require what is commonly called a “dwelling policy.” These types of policies may be the only type of coverage available in the market. While dewelling policies have some similar characteristics as a standard homeowner’s policy, there may be significant reductions in coverage.

Coverage Options

Even standard homeowner’s insurance policies come with variations depending on the premium. Policies that provide coverage on a “named perils basis” only provide coverage if the the peril (such as wind or lighting) is specifically covered by the policy.

At a higher cost to you, additional perils can be added. The most inclusive policies are referred to as “special form” policies. They provide coverage for the structures associated with the policy, unless specifically excluded. The burden of proof is shifted from the insured to the insurer for this more deluxe policy. 

Insurance is required for mortgaged homes, but finding the best policy can be challenging. The buyer should be sure to research their exposures and consult with a qualified professional to help ensure the exposures are appropriately covered.