Las Vegas and Henderson Real Estate

HOMEOWNERS' INSURANCE
A standard policy insures the home, as well as your possessions. Because this insurance is packaged, it covers liability for any harm, loss, and property damage that you or your family members cause others. It also includes additional living expenses in case you are temporarily displaced because of damage from a fire or other insured disaster.

A standard policy protects against several natural disasters and catastrophic events but will not guard against earthquakes, floods, war, and nuclear accidents. The policy can be expanded to include these disasters. 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.

While you are not legally required to have homeowners' insurance, mortgage lenders stipulate that you do. It protects their investment in the home in case of a natural disaster or catastrophic event. If your mortgage is paid up - or you never had one - it is still a good idea to have homeowners' insurance
to protect your home and your belongings.

Am I Covered? - 17 answers about what is covered under a standard homeowner's policy.

10 WAYS TO LOWER YOUR HOMEOWNERS INSURANCE COSTS

Raise your deductible
If you can afford to pay more toward a loss that occurs, your premiums will be lower.

Buy your homeowners and auto policies from the same company
You’ll usually qualify for a discount. But make sure that the savings really yields the lowest price.

Make your home less susceptible to damage
Keep roofs and drains in good repair. Retrofit your house to protect against natural disasters common to your area.

Keep your home safer
Install smoke detectors, burglar alarms, and dead-bolt locks. All of these will usually qualify for a discount.

Be sure you insure your house for the correct amount
Remember, you’re covering replacement cost, not market value.

Ask about other discounts
For example, retirees who are home more than working people may qualify for a discount on theft insurance.

Stay with the same insurer
Especially in today’s tight insurance market, your current vendor is more likely to give you a good price.

See if you belong to any groups
Associations, alumni groups that you might be belonging to, may offer lower insurance rates.

Review your policy
Review policy limits and the value of your home and possessions annually. Some items depreciate and may not need as much coverage.

See if there’s a government-backed insurance plan
In some high-risk areas, such as the coasts, federal or state governments may back plans to lower rates. Ask your agent.

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5 THINGS TO UNDERSTAND ABOUT HOMEOWNERS' INSURANCE

Look for exclusions to coverage
For example, most insurance policies do not cover flood or earthquake damage as a standard item. These coverages must be bought separately.

Look for dollar limitations on claims
Even if you are covered for a risk, there may a limit on how much the insurer will pay. For example, many policies limit the amount paid for stolen jewelry unless items are insured separately.

Understand replacement cost
If your home is destroyed you’ll receive money to replace it only to the maximum of your coverage, so be sure your insurance is sufficient. This means that if your home is insured for $150,000 and it costs $180,000 to replace it, you’ll only receive $150,000.

Understand actual cash value
If you choose not to replace your home when it’s destroyed, you’ll receive replacement cost, less depreciation. This is called actual cash value.

Understand liability
Generally your homeowners insurance covers you for accidents that happen to other people on your property, including medical care, court costs, and awards by the court. However, there is usually an upper limit to the amount of coverage provided. Be sure that it’s sufficient if you have significant assets.

TITLE INSURANCE
Title insurance protects your ownership right to your home both from fraudulent claims against your ownership and from mistakes made in earlier sales, such as mistake in the spelling of a person’s name or an inaccurate description of the property.

Title insurance is a one-time cost usually based on the price of the property, it’s usually paid for by the sellers and it is almost always a requirement for closing on a home.

There are both lender title policies, which protect the lender, and owner title policies, which protect you against any title-search errors and losses that arise from disputes over property ownership.

PRIVATE MORTGAGE INSURANCE
Lenders require private mortgage insurance (PMI) on most conventional loans with less than a 20 percent down payment because they have found that the less money borrowers put down, the more likely they are to default on a loan.

PMI guarantees the lender will not lose money if this happens and a foreclosure is necessary. The buyer pays this insurance, usually a small fee at the outset and a percentage of the face amount of the loan that is added to the monthly payment.

This insurance is usually no longer necessary after enough equity has built up in the property. Contact your lender if you meet this requirement and want to drop PMI.

Renters Insurance