Whether Renting or Buying, Consider These Tips for Proper Insurance Coverage

We’ve been seeing continued improvement in the residential real estate market with home sales rising, interest rates continuing at low rates, and the job market showing enough improvement that people are comfortable selling their homes.

The New York Times today has posted a useful calculator to help individuals determine whether the economics of buying make sense.

Factors to Consider when Insuring Your Home

With respect to insurance, it is important to note that the value one should be insuring their house for is independent of the market value.  A home needs to be insured at a value that will allow it to be rebuilt, which includes labor, materials, debris removal, and demolition.  This amount needs to be calculated assuming that no undocumented labor is used and that volume discounts for materials are not available.  Most policy contracts state that the home must be reconstructed exactly as it was before, which means artisans would need to be brought in to install plaster, moldings, and other elements not generally used in modern construction.  Some companies, though, explicitly specify that modern materials are to be used not matter what.  We recommend you review this aspect of your policy thoroughly with your agent.

For renters, it is highly recommended that they obtain renter’s insurance to cover their belongings, provide money to live elsewhere in case of damage to their apartment, and to cover for lawsuits.

Quotes for renter’s and home insurance can be obtained at https://www.espositoins.com/.