NEW YORK (Realty Wire) — To educate prospective homebuyers about their property insurance needs, the Insurance Information Institute (Triple-I) and the National Association of REALTORS® (NAR) today released a Homebuyers Insurance Handbook.
“Now more than ever, given increased climate risk as well as economic and inflationary challenges, homebuyers need tools to help them make informed decisions to better manage what is often their largest individual investment,” said Sean Kevelighan, CEO, Triple-I. “Having the right type and amount of insurance provides critical safe keeping to homes, and so by Triple-I teaming up with the National Association of REALTORS®, we will empower even more consumers with key insights during a most important transaction.”
Purchasing a home can be an exciting event that can also come with new responsibilities and questions, especially for first-time buyers. The Handbook’s readers will discover information on making sense of these concerns in line with their financial goals.
“The Homebuyers Insurance Handbook clearly explains how purchasing a homeowners insurance policy with the right type and amount of coverage protects a homeowner’s investment and financial future,” stated Kenny Parcell, President, NAR. “This eight-page Handbook includes the essential information a prospective homebuyer needs to prepare for a conversation with their insurance professional.”
For instance, the amount of coverage for the home itself should be based on what it would cost to rebuild the structure in the event of a total loss, in its current location, with comparable construction materials–at prices that may be affected by disaster-related demand surges or inflation. Protection to rebuild a home’s structure is typically listed as dwelling coverage. Once the home’s dwelling coverage limit has been established, personal property coverage usually equals 50 to 70 percent of that number. Also, to be covered for property damage caused by either floods or earthquakes, a homebuyer must purchase separate policies because both perils are excluded in a standard homeowners insurance policy, the Handbook notes.