Keep These Insurance Tips in Mind When Buying a Home in NYC

Buying a home is very exciting, but it can also be overwhelming and even nerve-wracking.

When you’re in the market to buy a property, you are already facing so many complex transactions, and it can be easy to disregard the homeowner’s insurance process, especially for first-time buyers.

Your mortgage lender will most likely require you to have homeowner’s insurance, so it’s important to factor it in when calculating monthly mortgage payments.

As vital it is to know your rights and the legal issues involved in residential real estate transactions, such as disclosures, purchase contracts, potential title defects, zoning issues, and taxes, it’s also important to take steps to ensure that, if something happens to your home, you are covered.

Also, New York’s real estate laws and practices in some respects are different than in other states, particularly for co-ops or condos, so it’s wise to get well informed and seek help from qualified professionals.

Here are some insurance tips to keep in mind when buying a house:

1. Contact at least three companies to compare coverage.

You are not required to buy from a particular insurance company, so do compare coverage, price and customer reviews. Your home is a big investment and an asset, so shop for value, not necessarily rock-bottom price.

2. Get adequate coverage.

You may be required to purchase additional insurance, such as flood insurance, so be sure you get the right type and amount of coverage. The most important part is the level of coverage, but avoid paying for more than you need.

3. Understand the details and terms of your policy.

Before you make a decision, understand what exactly your homeowner’s insurance policy brings, and how all the terms work together. Ask questions, and if needed, seek professional help, to ensure you have the right amount of coverage at the right price!

4. Escrow your home insurance payments with your mortgage payments.

Most homeowners bundle monthly insurance payments onto their mortgage check. Lenders prefer to set it up so that your escrow account pays for your insurance premiums, as this shows your insurance premiums are being paid, and their investment is well protected. In most cases, you’ll need to pay for one year of home insurance at closing.

5. Consider raising the deductible.

Higher deductibles equal reduced premiums: a homeowner willing to take a greater portion of the risk by agreeing to pay a higher deductible in the event of a claim, will pay a much lower premium. Since insurance should only be used for catastrophic events and never for small claims, it makes sense to have a higher deductible.

6. Consider installing a security system.

While smoke detectors have become a standard safety feature in new homes and should be installed in older homes, also having a security system that is monitored by a central station alarm company or notifies the police directly will typically provide a 5% discount. They may not only save a life but could also reduce the cost of your home insurance.

7. Bundle Policies and purchase an umbrella policy.

Bundle insurance policies together (auto, business, and life) – it can save you on annual premiums.

One of the most cost effective ways to ensure better insurance coverage for your entire family is to purchase an Umbrella Policy. It will give you greater personal coverage, protection of your secondary home(s), automobile injury protection, and protection from certain lawsuits.

8. Have the right team of professionals on your side.

Experienced and trustworthy real estate professionals and a seasoned real estate lawyer will certainly help smooth out the process of purchasing a home.

A home is a major investment, and real estate transactions involve real property law, so to make sure your interests and rights are protected – have a real estate lawyer to guide you and help prevent many legal consequences that can happen during the process.

When searching for top New York real estate law firms, trust the Levin Law Group’s skilled and dependable real estate attorneys to assist you with a wide spectrum of residential and commercial real estate transactions throughout New York State and New Jersey.

Contact Levin Law Group real estate law firm today.