What is Homeowners Insurance_

What is Homeowners Insurance?

  • By Teresa Tims
  • July 23, 2019

Homeowners insurance is something that’s required by lenders on home loans and is part of that PITI principle, interest, tax and insurance in your monthly payment.


What Homeowners Insurance is for,  is a major disaster like a flood.  If your House has water damage, and you submit a claim to the homeowners insurance and they cover it, or if there’s a fire, lets say the house burns down to the ground and they rebuild it, that’s what Homeowners Insurance is for, that’s it, pretty simple.

At TDR Mortgage when you begin an active transaction we help you with all facets of the transaction not just the “Loan” Part.   We suggest you get a quote with someone you are already working with, see if you qualify for a discount or something.  Then we get a quote for you from one of the companies we do business with.  Generally, our Insurance Broker seems to have the best luck with Mercury Insurance.  I find they are reputable, affordable and I have never had a client come back to me with any issues.

Fire insurance, Homeowners Insurance, otherwise known as Property Insurance or Hazard insurance is a very important insurance to be knowledgeable about.

Here are my Top Tips

What’s the Dwelling Coverage?

You want to make sure you are adequately covered be knowledgeable about the cost to rebuild.  Ask you insurance person to explain why you have the coverage you do?  Does it look right to you knowing your market and how much you are paying for your home?

What’s the Deductible?

Is the deductible a good value?  Are you paying too much for a low deductible? When in most cases you would never turn in a claim for something under 1000.00 anyway?  I typically see 1000.00 deductible as a good value, however sometimes the 500.00 deductible isn’t much more so look at the different options.

What’s the Liability Coverage? 

If someone gets hurt on your property, do you have enough coverage, especially if you have a pool.  If you have a pool I recommend 500,000.00, if no pool then 300,000.00 should be adequate.  Be safe, always get too much as opposed to, too little!

When you’re looking to buy or sell in southern California pick up that phone and call us at (909) 920-3500.  TheSoCalLoanPro.com

About Author: Teresa Tims

Teresa Tims is President of TDR Mortgage in Charming Downtown Upland CA. She prides herself in offering quality home loan products, competitive pricing and knowledgeable assistance when helping her clients select a home loan. Teresa is a life-long resident of the Inland Empire. Read More