Kathy Henne: Insurance protects your investment


When you purchase an automobile, what’s the first thing you take care of before driving around town? You’ve got to get insurance, of course. It’s no different when you’re ready to buy a home, but you have some more insurance options.

First, understand that there are four basic types of insurance, some required, some not. Title insurance protects you in the event that the title to the property is found to be in question. Normally the lender requires you purchase title insurance to protect them and you’ll be wise to purchase an owner’s title insurance policy to protect yourself.

Homeowner’s insurance provides coverage in cases of theft, damage and liability. Your lender will require this policy, so this is a necessity.

Flood insurance may or may not be required, depending on the location of your new home. This policy can cover replacement value of the home and it’s contents. Your lender will require a flood certification to determine if your property is located in a flood zone which would require flood insurance.

Finally, a newer and very popular form of “insurance” is the home warranty. It is often provided by the seller as “peace of mind” for the buyer, but if the seller will not provide it, the buyer can purchase a policy for themselves through their real estate agent. These are often one year policies that cover repairs to mechanical systems of the home and the appliances. Consult with your real estate professional if you have any questions or concerns about any of the insurance policies addressed here. They’ll be happy to help you.

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