In most instances, mortgage lenders require that home buyers obtain homeowners insurance as a loan condition. Be sure to research the best premiums for insurance on your own as you will save money. If the lender imposes insurance, it will undoubtedly cost much more, so do your homework.
If you live in a community governed by a Homeowners Association (HOA), be certain that your lender has a copy of the HOA insurance policy covering the home exterior. Reminder: you will still need your own insurance to cover the interior and contents of the unit.
It is important to determine that you have sufficient insurance to cover any and all losses before a problem occurs. You should also be sure to ask if you need special coverage for items like jewelry, art, antiques, computers and the like.
While your home should be insured, the land it stands on is typically not since the majority of home disasters will not affect the land. Be sure to subtract the value of the land when working with your insurance agent to calculate premiums or you will be paying premiums that are too high and not necessary.
“Replacement” coverage will provide sufficient insurance to rebuild your home and replace all its contents. If you opt for “Actual Cash Value” coverage, even though your premiums will be less costly, you will receive only enough to cover what the property is worth at the time of the disaster which equals depreciation for wear and tear plus your cost of the property.
You may be eligible for discounts if you are either a long term customer of the company or are a senior over age 55. Some safety features in the home may also qualify your policy for lower premiums such as smoke detectors, security doors and alarm systems, dead bolt locks, etc.
Keith Munsell 
