Purchasing a homeowner’s policy in Pismo Beach, CA protects a person’s investment. In many cases, it’s required by the resident’s mortgage company. It’s a smart idea to have homeowner’s insurance even after your home is paid off. And you there’s more you should know prior to purchasing a policy.
1. Get a Policy Based on the Home’s Value
The policy amount is dependent upon the home’s value. You need coverage that will not only cover damages done to the home itself and the property, but you’ll want to get a policy to cover all of the possessions inside the home as well.
2. Read the Guidelines Thoroughly
When you’re researching and comparing, look at the coverage and restrictions. Sometimes, certain events aren’t covered under a standard policy, and you may require additional coverage. You may experience an emergency that’s not covered if you don’t understand the options thoroughly.
3. Insurance Combined with Escrow
In some cases, the lender requires the homeowner’s policy to be paid through escrow. This is particularly the case with individuals who are at a high risk for not paying monthly payments. It’s sometimes beneficial since the homeowner doesn’t have to worry about when a payment is due. A forgotten or missed payment could cause a lapse in coverage, which is prevented when the payment is made at the same time as the person’s monthly mortgage payment.
4. Know the Minimums
Contact your mortgage company and inquire about the insurance coverage required and the minimums. Discuss with your Pismo Beach, CA agent what’s required by law. This helps determine the bare minimum, and then you can build from there.
To receive a quote or discuss with an agent the ideal homeowner’s insurance policy for you, contact Neff and Associates, serving Pismo Beach, today at 805-773-1710. Our friendly insurance agents will be able to go over you options and help you decide on the right policy to meet your needs.