Did you know all lenders require borrowers to obtain hazard insurance on the property?
The coverage amount is based on the value of the property and the costs to rebuild the property (in case of total loss). Many first-time homebuyers in Virginia Beach, Norfolk and Chesapeake ask me about the difference between hazard and homeowner’s insurance. There is no difference, they mean the same thing.
The home buyer has discretion to choose the policy and deductibles.
This week, I did a Q & A on hazard insurance with Tom Clyburn, a 4th generation Nationwide Insurance agent® here in Hampton Roads.
Question 1: What is the greatest loss event?
Tom: The greatest loss event in Hampton Roads is wind. Wind damage causes approximately 70 percent of all claims along the coast.
Question 2: Are any loss events excluded from coverage?
Tom: Floods are NOT covered by homeowners insurance policies. You must obtain flood insurance through the National Flood Insurance Program (NFIP). Ask your current home insurance agent for more information.
Question 3: Do any safety features save people money?
Tom: Most home insurance companies will give you a discount for a burglar alarm hooked up and monitored by a third-party vendor.
Question 4: What else would you like people to know about homeowners insurance?
Tom: Combining home, auto, and life insurance with the same company is almost always less expensive than having insurance policies scattered around.
Thanks, Tom, for the great information!
Featured photo: Flickr