HOME WARRANTY VS HOME INSURANCE
HOME WARRANTY VS HOME INSURANCE
Video Transcript:
Insurance insurance insurance oh and homeownership. That's the topic of my next video if you're considering buying a house and you're confused with all the different type of insurances that might be required for this transaction then you're in the right place hello everybody my name is Mark Schreier and I'm a licensed real estate salesperson with century 21 American homes real estate right here in Syosset Long Island the topic of insurances can be confusing for people who are considering coming from a rental property and making this large investment sometimes which seems very overwhelmed overwhelming so hopefully this video will help relax you a little and let's break it down first we have a home warranty verse home owners insurance verse flood insurance I'm gonna get into the three basic insurances that are out there and one of them being a warranty but I'll discuss in a little detail what that is all about first let's talk about the most popular one homeowners insurance every person buying a house I highly suggest if you're paying cash you need to have homeowners insurance attached to your property if there's a fire some sort of other accident depending on the policy whether it be water damage from an overflowing sewer whether it be other damage from wind or a hurricane again depending on your policy so make sure you check with your insurance professional on that it would be covered otherwise you're paying out of pocket and it can be thousands and thousands of dollars out here in Long Island I would say the average price of a house I'm in the Northeast in Plano Syosset Jericho the starting price could be close to five hundred thousand dollars for a house so if you're paying that amount of money and you don't have insurance because you said I'm paying cash on the property so I don't need insurance then I would say you're wrong peace of mind protect your investment you put money in a Bank its FDIC insured you put money in real estate you need to have it insured somehow if you buy it with a mortgage the bank won't give you a mortgage unless you have the correct amount of homeowners insurance so make sure that you shop around and yes you can shop around there's plenty of competitive mortgage brokers out there well that will help you with that with the shopping and make sure you know what you're getting when you buy that policy we interrupt my video for a special housekeeping announcement if you're new to my channel thanks for stopping by please remember to subscribe and click the bell for notifications the name of the channel is real estate 101 everything you need to know about buying and selling residential real estate if you enjoyed it please give me a thumbs up if you weren't too thrilled don't tell anybody also please remember these comments in the comment section below they include in those comments things you liked about this video also include topics that you'd like me to discuss in future videos I'm trying to make a platform there of things that I wish I knew before I bought my first house now back to our video and let's talk about the next one I said home warranty versed homeowners insurance a home warranty covers things like appliances in your house from break down because if you buy a house if let's say you buy a 50 year old property you're gonna have a washing machine a dry or microwave your furnace your boiler your central a/c system and those things can break down and they will not be covered by your homeowners policy of all of a sudden your central a/c system that cost about fifteen thousand dollars depending on your house breaks down you can't make a claim on your homeowners insurance unless something caused it to break down and then you'd have to discuss that with your your mortgage I mean excuse me with your insurance broker and they will let you know whether that is something that is insured or not but if you have a warranty on the particular appliance in this case I'm talking central a/c through a third-party insurance company it could be a covered item now there are other options to a a home warranty that particular system could be covered from utility company I know I have a separate policy with my utility company that covers my boiler and my central a/c system and I find it more cost-effective if you want to cover your microwave and other things that is your choice but definitely do your due diligence I'm gonna include a video that I made recently on whether or not buying a home warranty is a necessary thing for you to do it's not mandated it is definitely an option if you're a house that you're looking to buy as a home warranty included in the price and/or included in the sale of the house then you're getting it for Freight other than that if it comes with it why not take advantage of it last insurance I want to talk about is flood insurance now if you live on Long Island a lot of the properties are closer to the coast to require flood insurance and that can be an expensive proposition I'm also going to include a link in the bottom to a video I made on whether or not I should buy a house in a flood zone it's a totally personal decision it could cost a little more because flood insurance can be pricey there's one tip I will give you make sure if you your house mandates flood insurance that maybe the homeowners policy or the homeowners that live in it now have a flood insurance policy that's transferable that can save you a lot of money rather than buying a new policy you take the policy that they currently have and you can transfer it over and for people looking to resell if you're in a flood zone and you paid off your mortgage I would advise you to keep that flood insurance for a not only peace of mind but also when you go to sell your property if it is transferable you now have one up that somebody in your area in the flood zone might not have flood insurance and then the new homeowners coming and shopping around are gonna find out that they have to pay a lot more money for this house let's say it's the same exact type of property in almost the same location your flood insurance is grandfathered into the new owners does not. Which property would you consider buying first? This is Mark Schreier from century 21 American Homes and thanks again for watching hello yes I'm talking to you the person that watched my video to the very end thanks a lot for watching if you enjoyed it please give me a big thumbs up subscribe to my youtube channel like me on Facebook I am a licensed real estate agent in New York State but I also have a referral service that deals nationwide so if you're looking for to buy or sell a house anywhere in the United States please send me a text contact me via phone and I'll set you up with a local professional in your area if you're in my vicinity I'd be more than happy to help you out in any of your real estate transactions that you'd like this is Mark Schreier from century 21 American Homes and I'll talk to you soon.
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