5 coverage options you need when buying a new home

Here are the most common homeowners insurance coverages removed by insurance agents and mortgage brokers so you can get the cheapest quote

In this article are explained coverage add on endorsements you need because after you buy a house you don’t want to pay out of your pocket on your next claim

  • Replacement cost on contents
  • Roof replacement coverage
  • Water Back up
  • Service Line protection
  • Home Systems

 

REPLACEMENT COST CONTENTS

When this coverage is removed it allows the insurance claim rep to pay you for your damaged property at a deep discount that saves the insurance company money and you’re left with not much to go out and replace your things

Actual cash value is when the claim check has a deduction for depreciation

ex) If you have a 5 year old sofa and it is damaged instead of getting the money to go out and buy a new one you would get 5 years of depreciation deducted from the claim check

The older your personal property the more the insurance company deducts from the claim check

You want Replacement Cost on Contents or personal property

 

ROOF REPLACEMENT COVERAGE

I didn’t even know you could remove this coverage but one of our customers was buying a home and his real estate agent recommended her insurance agent to give him a quote and they removed replacement cost on the roof and added actual cash value to make their quote cheaper than ours

Without replacement cost the claim rep will deduct for depreciation on your next roof claim check and the older the roof the less money you get to replace your roof

This one mistake could cost you thousands off the next claim check

 

WATER BACK UP

An inexpensive coverage add on to give you the coverage needed for damage when the water backs up into your home

This is something most home buyers believe is automatically covered but without the endorsement to the policy you would be paying this damage out of your pocket

This add on can be as low as $25 a year

 

SERVICE LINE PROTECTION

When the sewer or service line under the slab collapses this coverage allows the insurance company to pay for the pipe replacement

Damage estimate starts around $5,000 so your policy needs to include this coverage

 

HOME SYSTEMS PROTECTION

This is a complete breakdown of your a/c unit, washer and dryer, dishwasher, refrigerator, tv or computers

If you are buying a new home you may want to consider a home warranty for the first year and this add on to the homeowners insurance policy to give you complete protection of your property

If you are buying a new home in Louisiana and want to get a home insurance protection proposal from the top three companies in the zip code just click here to get started