BOULDER, CO, Apr 23, 2024—When you're wading through the legalities of buying a home, the process can be daunting, especially if you're a first time buyer. Interest rates, mortgages, and appraisals, oh my. Below, Phil Boren, Broker Associate of RE/MAX of Boulder, Inc. spares you some confusion by weighing in on what type of homeowner's insurance is your best bet.
“For most buyers, a standard insurance policy will do,” explains Boren. These basic policies protect against several natural disasters and catastrophic events. “However,” says Boren, “it will not guard against earthquakes, floods, war, and nuclear accidents.” Looking for a little extra disaster coverage? The policy can be expanded to include these disasters as well as coverage for such things as workers' compensation. In fact, the lender may require that you purchase flood or earthquake insurance if the house is in a flood zone or a region susceptible to earthquakes.
Looking for even more coverage? “You can increase coverage beyond the depreciated value of personal property such as televisions and furniture by purchasing a replacement-cost endorsement,” says Boren. And dome-based business-coverage, once overlooked, is an ever-increasing popular rider. It does not cover liability associated with the business but rather contents such as home-office equipment and general liability to cover injuries to clients and employees.
Other considerations: an inflation rider, which increases coverage as the home’s value rises, and getting insurance that is equal to the full replacement value of the home. In these instances, insurance companies usually require an amount equal to at least 80 percent of the full replacement value, Boren explains. Otherwise, only a portion of the loss would be covered.
For more real estate information, please contact RE/MAX of Boulder, Inc. at philboren@gmail.com, 303-441-5647, or RE/MAX of Boulder, Inc..
Phil Boren is a 26-year veteran real estate Broker and Realtor, specializing in consulting with buyers and sellers in Boulder, CO and along the Front Range of Northern Colorado. Held Real Estate Broker's license in Texas, California and Colorado; Managing Broker for over 200 agents and Brokers for Century 21 and RE/MAX franchises. Award-winning Realtor with experience in management, sales, marketing, relocation, appraisal, REO, BPO's, foreclosures, short sales; previously held the MAI designation from the Appraisal Institute. Experienced in both residential and commercial real estate and achieved the No. 14 individual ranking in the 5-state, Mt. States Region for RE/MAX International in 2001, based on sales volume. Received my BSBA in Finance and Real Estate from the University of Arkansas in Fayetteville, where he was a 4-year starter and 4-year football letterman for Hall-of-Fame coach, Lou Holtz.