Is There More than One Way to Insure Property?
If you are in search of homes for sale in Bayfield, CO, you need to carefully consider the type of insurance you decide to go with after buying your new property. There are three main types you can choose from: rebuild value, market value, and third-party liability insurance. The most common type of insurance coverage that people need is insuring the physical structure of their property. Team Lorenz is ready to help you unravel the specifics of your insurance needs for homes for sale in Bayfrield, CO.
Rebuild Value Insurance is a special form of insurance that will cover the cost of rebuilding the structure, should it be heavily damaged or need repairs. The sum of the insured amount is based on the size of the property and the cost to rebuild the property. As a general rule, insuring based on the rebuild value is cheaper than insuring market value, as the land value is not taken into consideration.
Market Value Insurance is another popular type of insurance that offers coverage based upon the market value at the time when the policy is activated. If the insured property is completely destroyed or damaged beyond repair, the insurance company then takes on all ownership and responsibility for your property. They pay you the value of your policy and then they become owners of the damaged property, leaving you to take the policy amount and buy a new home elsewhere.
Third-Party Insurance offers policies that offer another way to cover property. Owners of stand-alone homes would purchase rebuild value insurance as they are not dependent on any other party. The best and cheapest way for tenants of an apartment building to get insurance coverage, would be to have the entire structure covered under one umbrella policy insuring not only the individual apartments but also the common areas. This is beneficial for apartment complexes because it can cover the building the people living there and all of the possessions and items on the property.
Regardless of how one chooses to insure, it is important to be aware of what would be covered under the policy when seeking homes for sale in Bayfield, CO. The general rule is that anything that can be moved in and out of the home are considered contents, and anything physically attached to the building are considered part of the structure. As such, the type and value of the insurance as well as the extent of coverage the policy offers should take this into consideration.