VACAVILLE, CA, Mar 29, 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, Stephen Spencer, Bev Dorsett & Sue and Steve Kappel, Broker/Owners of Coldwell Banker - Kappel Gateway 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 Sue and Steve Kappel. These basic policies protect against several natural disasters and catastrophic events. “However,” says Sue and Steve Kappel, “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 Sue and Steve Kappel. 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, Sue and Steve Kappel explains. Otherwise, only a portion of the loss would be covered.
For more real estate information, please contact Coldwell Banker - Kappel Gateway at info@kappelgateway.com, 707-427-5344, or Coldwell Banker - Kappel Gateway.