Real Estate Law
A home is a big investment both for you as the buyer and for the bank that holds your mortgage. Most mortgage providers will not loan you money unless you insure your purchase. Even if you do not have a mortgage on the property, homeowner's insurance is extremely important.
Home insurance laws can depend on the state where the property is located. Local laws may impact homeowners insurance restrictions, requirements, and regulations. Contact a real estate attorney where you live to get specific answers regarding your home purchase situation.
Every homeowner's insurance policy is different. Typically, a homeowner's policy insures the residence, a certain amount of personal property, and specific itemized pieces of property such as particular pieces of jewelry or collectibles. Many insurance companies offer homeowner's insurance and, as with every type of insurance, it is up to the policyholder to determine which insurance company offers the best coverage for the best price.
You can obtain homeowner's insurance by contacting an insurance company directly or working with an independent insurance agent. Many companies give discounts if you carry more than one policy with them (such as car insurance and homeowner's insurance.) Discounts might also be available for certain safety measures that are taken on the property such as alarm systems and fire protection systems.
An insurance company can deny you coverage if they determine that the risk of insuring you is too high. Some common reasons for denial of homeowner's insurance coverage include:
It is important to remember that while an insurance company can deny coverage based on an objective determination that insuring the property is too risky, it cannot deny coverage for discriminatory reasons. For example, an insurance company can refuse to provide coverage based on the crime rate of a certain neighborhood but it cannot deny coverage based on the purchaser's race, color, religion, national origin, sex, disability, or familial status.
If you have been denied insurance coverage then you have several options available to you. You can:
Homeowner's insurance is an important part of being a homeowner. It can be hard to recover financially if your home is damaged. Therefore, it is important to find the coverage that is right for you before tragedy strikes.
This article is intended to be helpful and informative. But even common legal matters can become complex and stressful. A qualified real estate lawyer can address your particular legal needs, explain the law, and represent you in court. Take the first step now and contact a local real estate attorney to discuss your specific legal situation.