Homeowner’s Insurance

Real Estate Sales Representative with DIR-USA.com

Wholesale Real Estate - Vienna VA: There are lots of things to think about when you buy your first investment home. Whether it’s for you to live in or you intend to rent it out, you’ll need the property to be insured. You should know something about it so when you shop around for a good company and a good price you’ll be able to make an intelligent choice.

 Homeowner’s InsuranceFirst off, the insurance will be expected to replace the buildings on the property. The land itself won’t be insured except for liability to visitors to the property. In other words, if you paid $250k for your home that’s on an acre of land, the house may be worth only $150k and the land another $100k. So your insurance policy will be written only for the replacement value of the buildings. Insurance companies don’t cover your grass or dirt yard. Due to inflation of actual building costs and materials, you will need to insure for what it would cost to actually replace the building and restore it to original size and condition. This differs from another type of homeowner’s insurance in which you would receive only the depreciated value of the home as the years go on.

This is usually cheaper, but only because the insurance company’s costs would be less in the event of a disaster.Insurance has different rules in each state, so know what your state requires of both you and the insurer. Know your rights in the event that you should need to collect on your policy. The costs of the insurance will depend on the state, the coverage you want, and whether or not you are eligible for certain possible discounts. Usually, if you have your homeowner’s and auto or other personal insurance through the same company you will receive a multi policy discount.

Insuring a property in which you will have renters may require additional considerations depending on your state and your company. This is common, however, as it would be considered more of a commercial or money-making property instead of personal living space. Check to see whether you are covered under earthquake or flood as these might be separate and additional charges. You would be quite surprised if your rental property had a water main break that flooded the first floor, doing irreparable damage to the floors, the foundation, and the renter’s things, only to find out that your insurance doesn’t cover flooding.

 Homeowner’s InsuranceDJJ Properties is a real estate company based in Fairfax County, Virginia who handles both commercial and residential properties.

The culture of the company is to assist people with appropriate decisions in buying and selling real estate. “We like to help people solve problems in real estate”.

For more information on DJJ Properties please contact us today!

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