Insurance/first time home buyer

[Tim Murray]

What to look for when looking for an insurer for an SFR?

[Aaron Porter]

@Tim Murray 

For your insurance like Esta said one of the big things is the difference between Replacement Cost or Actual Cost Value.  Replacement Cost will make sure that regardless of the rising cost of labor and material that your property will be rebuilt to the same "like and kindness".  Where Actual Cash Value depreciates the value of everything in the property depending on age.  If a roof is 15 years old the cost of replacing the roof will be divided by the "average length of a roof's life" then 15 years of that cost will be deducted from the payout.  so a $10,000 replacement with a 20 year life span will only recieve $2,500 if the roof gets replaced due to a covered peril.  

Most of the time ACV policies have less covered perils than RCV policies.  

Other things to note for your policy is to make sure that you are being properly quoted and covered for.  If your property is a 2 story brick structure with slate roof that is what it needs to be insured as, not as a 1 story with a metal roof.  If your property is improperly insured you will be denied if you need to submit a claim.

So work with an insurance agent that knows and understands your needs for coverage.