Homeowner insurance protects White Rock homeowners in the event of catastrophe. If something goes wrong, insurance can be the bargain of a lifetime.

 

Insurance and warranty coverage should be in place for the sale closing. Insurance policies and warranties have limitations and individual programs have different levels of coverage, deductibles, costs and “endorsements” (additional forms of coverage that may be available). For details, your are more than able to speak with White Rock Realtors like me, insurance brokers and White Rock home builders.

There are various forms of insurance associated with White Rock home ownership, including the major types listed below.

Title insurance: Purchased with a one-time fee at closing, title insurance protects owners in the event that title to the White Rock property is found to be invalid. Coverage includes “lenders” policies, which protect buyers up to the mortgage value of the White Rock property, and “owners” coverage, which protects owners up to the purchase price, i.e., protects both the mortgage amount and the value of the down payment.

Homeowners’ insurance provides fire, theft and liability coverage. Homeowners’ policies are required by lenders and often cover a surprising number of items, sometimes including such White Rock property as wedding rings, furniture and home office equipment.

Flood insurance: Generally required in high-risk, flood-prone areas, this insurance is issued by the federal government and provides coverage for both property and contents. Your White Rock Realtor will know what coverage you require.

Earthquake insurance is a form of property insurance that pays the policyholder in the event of an earthquake that causes damage to the White Rock property. Most ordinary insurance policies do not cover earthquake damage. Most earthquake insurance policies feature a high deductable which makes this type of insurance useful if the entire White Rock home is destroyed, but not useful if the home is merely damaged. Rates depend on location and the probability of an earthquake. Rates may be cheaper for White Rock homes made of wood, which withstand earthquakes better than homes made of brick.

As with flood insurance or insurance on damage from other large-scale disasters, insurance companies must be careful when assigning this type of insurance, because an earthquake strong enough to destroy one White Rock home will probably destroy dozens of homes in the same area. If one company has written insurance policies on a large number of homes in a particular city, then a devastating earthquake will quickly drain all the company’s resources. Insurance companies devote much study and effort toward risk management to avoid such cases.

Home warranties: Buyers of new White Rock homes want assurance that if something goes wrong after completion the builder will be there to make repairs. But what if the builder refuses to do the work or goes out of business?
Home warranties bought from third parties by home builders are generally designed to provide several forms of protection: workmanship for a short term; mechanical problems, such as plumbing and wiring, for a short term; and structural defects for a long term.

Home warranties for existing homes are typically one-year service agreements purchased by sellers. In the event of a covered defect or breakdown, the warranty firm will step in and make the repair or cover its cost.