In order to get a home loan, a borrower is typically required to have a homeowner’s insurance policy in place.

Here are a few tips to keep in mind when shopping for homeowner’s insurance (and yes, you should shop around!):

Ask for the A.M. Best Rating of each company you look at.
This will tell you how long each company has been around and what they can offer in terms of protection against potential risk.

Investigate which companies offer ACV policies and which ones offer Replacement Cost policies.
ACV (Actual Cash Value) policies pay claims based on the depreciated value of the item(s) lost. Replacement cost policies pay the full cost (in today’s dollars) required to actually repair or replace the item(s) to pre-loss condition.

Obtain an appraisal every five years.
This helps ensure you have purchased the right amount of insurance.
If additions are made or you remodel, you will want to revisit and possibly upgrade your plan.

Be sure to include any detached structures such as a garage, barn or shed on the insurance policy.

Do not over-insure. Insure only the items and structures that may need to be replaced.

If you have any questions, please contact us at (609) 597-0007 or