First time homeowners and insurance

Buying your first home is exciting, and it is important to make sure your biggest investment is safe, protected by the right insurance coverage. Let the professionals at Sharp Insurance & Financial Services in Ashland, KY help you find the best policy for your situation in your new home.

When you get your mortgage, some insurance may be included to protect the lender.  It is good to know what exactly is in this policy and see if it gives you all the coverage you want. It may only cover the structure, for instance.

One important concept to understand is replacement cost and market value. You need to get insurance for replacement cost, which may be different and is lower in many cases.  When talking about the contents, replacement cost is almost always better than market value 

There is dwelling coverage for the house itself, as well as attached structures like a garage. Other separate buildings, like a shed, are a different part of the policy. Personal property coverage is coverage on the contents, like furniture, electronics, appliances and so forth.

Additional living expense coverage would cover you if you had to stay somewhere else after a house fire or were unable to stay in your house for some reason. There is also liability coverage, which protects you if someone gets hurt on your property.

Stop by or call Sharp Insurance & Financial services today in Ashland, KY. we can explain all the details of homeowners insurance and set your mind at ease as you protect your property. We can explain all your options and help you find the best policy for your situation. The best is not always the most expensive. The key is to find a balance in getting the best policy for you as an individual.

Ways to insure your newly refinanced home

When you refinance your home, there are a few ways in which this can affect your home insurance. Typically, a homeowner will choose to refinance when he or she holds certain equity on the home….which is essentially the current value of the home but can increase (or ‘appreciate’) over a certain period of time, in turn….minus the current balance of the mortgage that you still need to pay off. And when you refinance, you’re basically just getting a brand – new mortgage with the goal of reducing the current monthly payments, getting cash out of the home for a bigger, planned purchase, or simply switching between lending companies (as the interest rates or other terms of another may become more appealing, making you an offer you cannot pass up on). You might even decide to change between home insurance providers, opting in for one that better suits your present need.

Also, keep in mind that, when refinancing the home, the mortgage holder, bank or other lending entity will ask that you have your home’s current value newly re – ssessed, just as if the home was currently on sale. And as such, a properly licensed agent will thus appraise the home from every angle to more properly diagnose its actual current valye, regardless of the "stated value" listed when you first signed the mortgage. And naturally, as follows, any and all changes within the home’s value will thus correlate with your home insurance costs; and whatever that final price tag looks like, get at least the MEC or Minimum Essential Coverage if you can afford nothing more. This’ll insure your home. And consider this before refinancing.

Sharp Insurance & Financial Services sells insurance to Ashland, KY customers. They love what they do. Give them a call. Let them help you.

Who Requires Home Insurance?

When you are looking to buy your next home, many important factors need to be taken into consideration. One of the factors that needs to be considered is your home insurance needs. While most people are aware that having home insurance is a good idea as it provides valuable coverage, there are several situations in which having a home insurance policy in place will be required. 

Mortgage Requirements

The first situation in which you will need to have home insurance in place is when you have a mortgage. Most people in the Ashland, KY area will need to take out a mortgage to finance the majority of their purchase price. Having a home insurance policy in place will always be a requirement of any mortgage lender. Depending on where you live, you may also be required to get flood insurance. In many situations, the mortgage lender will also require that you have your payments escrowed on a monthly basis to ensure you stay in compliance.   

Association

If you live in an area that has a homeowners association, such as a condo development, the association documents will often have a stipulation that will require you to carry home insurance. This will help to ensure that you are covered by insurance in the event you or your home causes damage to another property in the association.  

For those that are in the Ashland, KY area, having a quality home insurance policy in place is important. Sharp Insurance & Financial Services will be able to help a local homeowner better determine their insurance needs and requirements. Sharp Insurance & Financial Services will also be able to help them get into a policy that will provide them with the right type and level of home insurance coverage. Try our online rating tool for a quote on home insurance.

A Beginner’s Guide to Home Insurance

Purchasing a new home insurance policy can be overwhelming, but there are a few simple things to keep in mind when getting your home insurance from Sharp Insurance & Financial Services.

Doing some research on insurance terms will help. For example:

  • Actual cash value is the cost to replace or repair your property.
  • The deductible will be your out-of-pocket expenses before the company pays.
  • Floater is coverage that is added to your policy for things like antiques or jewelry.

Some things may affect your rate that you can’t control, so it’s helpful to find out how much insurance will cost before you buy a home. You need to consider your home’s electrical system, plumbing, and overall structure. For fires, the Insurance Service Office (ISO) sets your insurance premiums based on its fire protection class of your town or city on a scale of 1-10. This scale is determined based on the city’s water supply and the number of fire stations.

Not everything will be covered by a basic insurance policy so always know what is covered and what isn’t. Keep documentation of the value of important items in a safe place.

In Ashland, KY, you can participate in the National Flood Insurance Program for additional flood insurance. If you work in the mines, the Kentucky Mine Subsidence Insurance Fund offers reinsurance against the collapse of an underground coal mine.

Beware of your backyard as well. Swimming pools, decks, and trampolines can also increase your liability and insurance premiums. Your dog could also affect rates; certain breeds like German Shepherd may lead to higher premiums, and you could be liable in case your dog bites someone.

Remember to review your policy on a yearly basis. To save money, consider raising your deductible or ask about any discounts.

For more information about a specific policy for your home, contact Sharp Insurance & Financial Services, serving Ashland, KY, at (606) 324-0696.