Lafayette Home Buyer's Guide Tip of the Month Louisiana

Time to Get Homeowner's Insurance

There are 5 types of homeowner's policies: HO-1, HO-2, HO-3, HO-6, and HO-8. HO-1 offers restrictive basic coverage. HO-2 offers basic coverage plus costs arising from misfortunes such as burst pipes. HO-3 is your best choice; it is an all-risk policy that covers everything not specifically excluded. This also gives you protection for personal liability and replacement cost for both the dwelling and personal property. (This is not a complete explanation of insurance; please talk to an agent.) HO-6 is for condominiums, and HO-8 is for unique older homes.

Shop for homeowner's insurance making sure you obtain replacement value in the policy you buy. Don’t wait until the last minute. Get at least 3 quotes on insurance as prices vary dramatically. This insurance will cover the improvements on the property (house, detached garage, dock, etc.) as well as your possessions (furniture, clothes, china, etc.).

You need to get enough insurance to replace the entire structure and its contents. The lender will require you to carry insurance in the amount of the loan; that may or may not be enough. According to the Insurance Information institute, 8 out of 10 owners do not carry enough insurance.