What Is a Homeowner's Policy?
As you may remember from Chapter 15, shortly after your offer for a home has been accepted and the wheels start rolling toward the closing, you will need to start shopping for homeowner's insurance. You will be required to show your mortgage holder proof at the closing that you have purchased a homeowner's policy and have paid at least the first premium.
Insurance companies are given ratings by various research groups based on customer approval. Deal only with companies that have an “A” rating. To check the financial stability of the insurance companies, visit National Association of Insurance Commissioners at
Do shop around for an insurance policy the same way you have for a home and a mortgage. Make some phone calls. Your real-estate agent or lender may have a suggestion. Indeed, many real-estate agencies have an insurance branch within their office — speak to that person about coverage. You don't have to be concerned about conflict of interest here. Get a couple of additional estimates, too. Rates and coverage vary, so shop around to see what your options are.
