Vancouver Portland Real Estate Blog

WHAT IS HOMEOWNERS INSURANCE FOR?

Filed Under Blog · Tagged: Relocation, Vancouver Realtor, Vancouver Washington Homes

Because a home purchase involves a lot of money and is a long term investment, insurance is required to protect the lender and any other lien holder on the property.

Homeowners insurance is a contract between a homeowner and an insurance company. As long as the owner pays the premiums and meets the other policy requirements, the insurance company guarantees to reimburse the owner for any losses incurred due to specific natural disasters, or specific human-caused damages.

A basic homeowner’s insurance policy protects the owner against any property damage that results from things like fire, lightning, wind or hail storms. There are certain things like earthquakes and floods that most policies do not cover, but coverage is available for those hazards. A basic policy will also cover homeowners against loss from theft or vandalism as well as reimbursement for personal property destroyed in natural disasters. Certain policies will also provide for something that many people may not normally associate with home protection and that is liability coverage for lawsuits brought against the owner by people who were injured on the property due to one thing or another.

Homeowners insurance is almost universally required with the purchase of a home and a Vancouver Home Owner must carry it. A great way to get information on homeowners insurance is to ask your Realtor or Broker and possibly he/she can also recommend an agent to discuss your needs. Lenders want to make sure the property is protected from major damages so that if you are ever unable to keep up with your payments, the lender can then reclaim ownership and they will want the property in fairly good shape so to be able to sell it fairly easily. The homeowner has a big investment in a home, and the lender has a huge state as long as they hold title on the property and they need to be protected.

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