28th Oct, 2011

Homeowner’s Insurance in North Carolina

Homeowner’s Insurance in North Carolina

Here Are The Facts About Homeowner’s Insurance In North Carolina and some points to consider when you buy your homeowner’s policy.

How Much Do You Need To Carry?

Your lender requires that the amount of insurance you carry should cover the amount of the loan you have outstanding with them.  That is a extremely minimal amount when you consider the true cost of rebuilding and replacing.  The amount of the mortgage is adequate for the mortgage company, but how about your interests?

What you paid for your home should not be the only determining factor for computing the amount of coverage you will actually require in the event of a catastrophic event.  This is especially true in today’s downgraded market where homes are often selling for less than it cost to build them.  Replacement cost is the true gauge.  Replacement costs include not just the cost of rebuilding, but also the cost of replacing your home’s contents.

Once you purchase a policy, your insurance agent should be able to calculate the cost of inflation and any increases in construction costs that have a bearing on true replacement value of your home.  These figures should be reviewed periodically and adjusted if necessary.

Does Insurance Cover Natural Disasters?

That is a popular misconception that many homeowners have.  Floods and earthquakes are not covered.  They need separate policies.  Earthquakes are rare, but if your home lies within a flood zone or it is near a small creek, flood insurance should be purchased.  ou need not be near a large body of water so don’t be fooled into complacency on this issue.  A flash flood is not out of the questions in many areas of North Carolina.

Do Homeowners Need To Shop For The Best Rates?

Insurance coverage is regulated and set by the Insurance Services Office (ISO).  That’s the good news.  The bad news is that the rates for similar coverages can vary considerably from one company to the next even though coverages are identical. It pays to shop for the best price.

Wendy Richards, Charlotte NC/SC Realtor® can give you a reference for an insurance agent that you can be trust and rely on.  You only need to ask for a referral.  Agents I recommend will offer truly competitive rates and the best coverage plans.

Wendy Richards
Charlotte NC/SC Realtor®

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