☞ Homeowner's Insurance
The purchase of a home is generally the biggest investment people ever make in their lifetime. To protect your most valuable investment, it is crucial to have homeowner’s insurance. Homeowner’s insurance is a financial safeguard against the unexpected, including property loss and injuries to third parties. Homeowner policy costs are determined by factors such as the level of coverage, neighborhood crime rate, the home’s square footage, and how prone the neighborhood is to natural disasters.
The standard homeowner’s insurance covers:
- Structural damage to the home
- Loss of personal items
- Additional living expenses
☞ Home Warranty
Home warranties are also available to protect your investment against the unexpected, both during the listing and after the sale. A home warranty is a type of insurance that covers repairs to specified parts of a home for a period of at least one full year. It is usually provided by the builder or property seller as a condition of the sale.
☞ Home Inspection
A home inspection informs homebuyers of the condition and possible problems a home may have. This can relieve anxiety, increase confidence, and may even reduce the risk of future legal action. A professional home inspector surveys the foundation and structure, roof, exterior, central systems (electrical, cooling, heating, and plumbing), and the appliances that will stay with the home.
Generally, the buyer will select and pay for the inspector. To avoid legal complications, the seller should not select the inspector. But not all home inspection companies should be treated the same. It is important to do a bit of research prior to selecting an inspection company. Here are some factors to consider:
- Experience: How long have the inspectors been in business and how many homes have they seen?
- Training: Have the inspectors gone through any home inspection training?
- Membership: Is the inspector a member of a professional home inspection organization such as the American Society of Home Inspectors (ASHI) or National Association of Home Inspectors (NAHI)? An affiliation with a professional organization shows that the company is serious about what they do and that they are aware of advancements in their field.
- Insurance: Does the inspector have Professional Liability Insurance (Errors & Omissions Insurance)? When it comes time to collect on a legal judgment, an inspector without insurance may be unable to pay your claim.
Inspections on new home construction are also important. The construction business, like any industry, has shortcuts and tricks of the trade. Someone who is not familiar with them can easily miss them.