Homeowner’s insurance is an incredibly valuable and beneficial policy for homeowners to have, but it is necessary to understand what traditional policies do and do not cover. Once you familiarize yourself with the intricacies of various plans you will be better educated to make the proper decision when selecting your desired level of coverage.

What’s Covered In Homeowner’s Insurance?

The majority of homeowner’s insurance plans will cover dwelling and other structure protection, personal property protection, natural disaster protection, and bodily injury liability protection. Dwelling and other structure protection plans cover damage to your home and other structures that are directly connected to the home, such as the garage. Personal property protection covers damage or loss of personal property within the dwelling. Natural disaster protection covers your home should a natural disaster cause damage, but note that natural disasters such as flooding and earthquakes typically are not covered. Finally, bodily injury liability protection typically covers injuries to individuals while on your property.

What Is Not Included In Homeowner’s Insurance?

As mentioned above, two of the major natural disasters that are not covered by homeowner’s insurance are flooding and earthquakes. There are specific insurance plans that cover flood damage and earthquake damage, but you’ll find that the vast majority of common homeowner’s insurance plans do not cover these types of disasters.

Homeowner’s insurance does not typically cover home business equipment either. If you are running a business from within your home, small business insurance is required to mitigate your risk.

Personal property over a certain value is also not typically covered unless supplemental coverage is purchased. Items such as expensive musical instruments, artwork, jewelry, and silverware should have their own insurance policy which is dedicated to valuable personal property.

Why You Might Need Homeowner’s Insurance

Homeowner’s insurance is intended to help protect you against the unexpected. You never know when a natural disaster such as a tornado or a lightning strike which causes a fire within your home might occur. Accidents do happen, and a visiting friend or relative can be injured on your property. Homeowner’s insurance is a great protection plan to have to make sure that both you and your property are covered should disaster strike.

When you’re ready to buy your next home, be sure to contact your local real estate agent to leverage their advice and expertise. Your agent will also be able to refer you to the best place to get homeowner’s insurance for your new home.

If you’re in the market for a new home and you’ve been researching mortgages, you’ve likely come across the terms “pre-qualification” and “pre-approval”. While these terms are self-explanatory in some circumstances, they are quite different in regards to mortgage financing.

In today’s blog post we’ll explain the difference between a mortgage pre-qualification and a pre-approval.

Pre-qualification: an Initial Look at Your Mortgage Options

The first – and easiest – step on the way to receiving mortgage financing to buy a home is known as pre-qualification. During this process you’ll meet with a mortgage advisor or lender who will assess your financial history including your current income and any debts that you might have. Using these numbers they’ll perform a quick calculation that suggests how much mortgage financing you might qualify for when you’re ready to buy a home.

Your mortgage professional will also answer any questions that you might have about the process, including what interest rates you may qualify for, how much you’ll need to invest in your down payment and more.

Pre-approval: A Conditional Mortgage Commitment

After you’ve been pre-qualified for your mortgage and you’re ready to start looking for a new home you’ll go through the pre-approval process. At this time your mortgage advisor or lender will take a much deeper look into your current financial situation, including pulling a credit report to assess how much risk they will have in lending you money. You’ll also complete a full mortgage application as this will allow your lender to get a conditional approval for a certain amount or range. Finally you’ll be informed about the interest rate and the terms of the mortgage once you find your new home and complete the purchase.

The Final Step: Finding the Perfect Home

Now that you’ve been pre-approved and have received a conditional commitment from your lender, you’re ready to find that perfect new home. On top of having a better idea of your price range and what you can afford, you’ll find that sellers are far more receptive to your offers as having a pre-approval signals that you’re a serious buyer who is ready to make your move.

When you’re ready to buy your new house or condo, your local mortgage professional is ready to help. Contact them to learn more about pre-qualification, pre-approval and your financing options. Enjoy your new home!