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Part Four

greater risk due to the fact that strangers will be going through the home. Almost any property you purchase that requires financing will also require hazard insurance, otherwise known as homeowners’ insurance. Your lender will not provide financing without it. However, if you are purchasing a condominium, townhouse or other property that is called a common interest community, this section may not apply. If the property has a homeowner’s association that provides insurance on all the units, you will not have to purchase your own coverage. Insurance covers you for a number of things, the most disastrous of which is total loss of your home by fire or other calamity. Homeowners’ insurance also provides you with liability coverage in the event someone is injured on your property, and it covers you in the event of loss from theft or other smaller mishaps. Interestingly, however, some of the things that most dramatically affect homeowners are being decreased or eliminated from insurance coverage, such as coverage for mold and water leaks. As of this writing [summer 2006], we are facing a national insurance crisis. The recurring theme of alarm in national, state and local meetings of Realtors® centers on the growing insurance crisis. More and more people are discovering hazard insurance is hard to find or nonexistent. There are three primary reasons that insurance companies are refusing to underwrite insurance on new purchases: 1. The seller has either filed a claim, or simply called about a problem, and the insurance company no longer wishes to insure or reinsure the home. The current seller’s insurance company could refuse to renew, or the refusal could come from a different company that has been contacted by the seller or buyer. The property may have had water problems— 110

Profile for Linda DeVlieg Real Estate

How to Make Your REALTOR Get You the Best Deal - Albuquerque, New Mexico edition  

A guide through the real estate purchasing process - co-authored by Linda DeVlieg and Ken Deshaies

How to Make Your REALTOR Get You the Best Deal - Albuquerque, New Mexico edition  

A guide through the real estate purchasing process - co-authored by Linda DeVlieg and Ken Deshaies

Profile for lindadev