Homeowner’s Insurance: Required and Essential If you’re financing your home, your lender will require homeowner’s insurance to protect their investment (and yours). You’ll need to prepay at least one year of coverage and provide proof of this before closing.
A standard policy typically covers: • Fire, windstorms, and hail. • Damage caused by theft or vandalism.
• Liability coverage for injuries on your property. • Temporary living expenses if your home becomes unlivable due to a covered disaster.
Pro Tip: Shop for insurance early to compare policies and rates. If your lender offers an escrow account to bundle taxes and insurance into your monthly mortgage payment, decide if this option works for you. It’s often easier than managing large lump sums on your own. Home Warranties: A Safety Net for Repairs A home warranty is optional but can be invaluable, particularly for first-time buyers. It provides coverage for repairs or replacements of major systems and appliances, such as HVAC or plumbing. In New Hampshire, sellers may occasionally offer a home warranty as an incentive, but if not, it’s worth exploring on your own. Plans typically cost between $350 and $600 per year. Word of Advice: Read the fine print! Not all warranties cover every issue, and some come with exclusions or high service fees. And be sure to research availability, as finding vendors in remote areas can sometimes be challenging. Appraisals vs. Inspections: Know the Difference Appraisals and inspections serve different purposes: • Appraisal: Determines the property’s market value for your lender. It’s required for your mortgage.
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