The Role of a Insurance Agent
in the Real Estate Transaction
The role of an insurance agent is to
provide a comprehensive policy which
will provide adequate protection in
the event of a loss. It should
provide coverage for you dwelling,
personal property, loss of use, and
liability. The amount of insurance
should equal the replacement value
of the dwelling. A bank or mortgage
company cannot require insurance in
excess of the dwelling replacement
cost. The insurance agent can help
you to calculate the replacement
value of your new home.
Although the provisions of the basic
homeowner contract are set by the
insurance commissioner, the rates
are competitive. Your goal is to
acquire quality protection and
service at an affordable price.
These are various endorsements to
the basic homeowner contract to
enhance the coverage, to amend
limitations and to tailor the policy
to suit your particular needs.
It is important that the agent make
you aware of these endorsements so
that you can make an informed
decision on the structure of the
policy. It is also important that
you be informed of the policy
exclusions, some of which can be
altered or amended by endorsement
and some which cannot.
Your home is likely to be your
largest investment, therefore it is
vital that you select an insurance
agent of integrity and demonstrated
competence.
