Building Insurance Explained

             Building insurance is the
part of your Homeowners
Insurance policy that covers the
actual building that you live in,
along with any outbuildings such
as a garage or carport, sheds,
etc.  Be sure to read your
policy to find out if it covers
extraneous items like fences
and an in-ground pool.

            Mortgage lenders
almost always require that
a borrower maintain a
current insurance policy
that protects the physical
home named on the loan.
If the home were destroyed
by fire or some other disaster
, the lender wants to make sure that you can rebuild your home and continue to make your monthly mortgage payments.  They want to protect their investment in you and your home.

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]            Be sure to schedule an annual review of the coverage on your building insurance policy.  It doesn’t take long for the amount of coverage you have to become outdated when compared to how much it would cost to rebuild at today’s prices.  Do not underinsure your home just to save a few dollars on monthly payments.  Many a homeowner has discovered, after it was too late and disaster had already struck, that their coverage did not even come close to covering the cost of rebuilding.

            Just as with personal property coverage that insures your belongings, a replacement cost policy is often the safest bet when insuring the building.  Keep your coverage updated and make sure that the amount of coverage will be sufficient to rebuild your home.