Insurance

Serving Northern Utah

Office (801) 668-4621

Fax (801) 392-8240

Homeowner's Insurance

Now that you are planning to buy a home, you’ll be buying homeowner’s insurance at the same time. Your lender will require proof at or before closing that you’ve provided insurance protection on the home. Here are some guidelines to help you in choosing the coverage that is right for you.

HO-1, HO-2, HO-3, and HO-5 policies are for house owners. An HO-6 policy is condominiums or co-op owners. In general, as a homeowner, you should avoid HO-1 and HO-2 policies, which are too limited to provide adequate protection, and price out HO-3 (open peril) and HO-5 (comprehensive, all risk) policies. The HO-5 is more expensive because, although it has the same coverage as the HO-3 on the structure, it offers broader coverage on contents. Most people find the extra coverage isn’t

worth the increase in premium payments.

Perhaps the most important feature you should insist on (and pay extra for) in an HO-3 policy is guaranteed replacement. This means that if you insure your house for 100% of its value as determined by the insurance company, they will rebuild it no matter what that costs, even if the cost exceeds the amount of the policy.

Ways to Save on Homeowner's Insurance

	Install smoke alarms.
	Get nonsmoker’s discounts if you qualify.
	Use the same company for your automobile policy, and get a combination policy discount.
	Shop around. For most people, auto insurance is more expensive than homeowner’s insurance. Look at the total costs of both from different companies. Talk to at least one independent agent in your area.

As an Independent Insurance Agent, Steve Lee would be happy to answer any questions or provide you a quote. Call Steve Lee at (801) 668-4621 today!