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Additional Resources
  • For more information about affordable loan programs and new home loans including Home Equity and Refinance call
  • For information on Homeowners Insurance call 1-800-262-4240
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Module 5
Life as a Homeowner
Settling In
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Maintaining Insurance Coverage

Make Sure You Have Adequate CoverageHaving adequate insurance coverage is a key way to protect your home AND your financial security. Make sure the value of the home is accurate and that you also have adequate coverage for your personal belongings in the home. Review your coverage for special items such as computer equipment, jewelry or collectables. You might need to purchase additional coverage (known as an endorsement) for these items. Depending on where you live, you might also need to consider various types of extended coverage. For example, flood insurance is required if you are in a federally-designated flood zone. But if you live in an area that floods often but is not designated as such, you might still want to obtain flood insurance.

Inflation Protection
You also might want to consider inflation protection on your policy. It automatically increases your insurance coverage as the value of your property increases. If you don’t have inflation protection and you do not revise your policy periodically to reflect your home’s increased value, you risk not being reimbursed for the full amount of damage should any occur.

Keep Your Policy Current
But the single most important thing you can do with your homeowners insurance policy is to make sure that it is current. Send your payments in on a timely basis. Insurance companies cannot cancel a policy during its term that has been in force for more than 60 days unless:
  1. you fail to pay the premium,
  2. you have committed fraud or
  3. you made serious misrepresentations on your application.
Advance Notice for Non-Renewal
Depending on the state where you reside, your insurance company must give you a certain amount of advance notice and explain the reason for not renewing your policy at the end of its term.

Getting to Know Your Home edge
As soon as you move in, take time to identify the location of the following systems:
  • Main cutoff valves for water and gas
  • Emergency switch for the furnace or burner
  • Hot water heater thermostat
  • Main electrical switch
  • Fuse box or circuit breaker box

Don't Wait for an Emergency
Remember, the time to learn about your home’s systems is BEFORE an emergency or breakdown occurs. This little bit of knowledge can help you avoid the risk of your home being destroyed or seriously damaged.
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