It is important to keep insurance in mind throughout the home buying process.  Most Lenders will not provide a mortgage without insurance coverage.  Homeowners insurance provides coverage in the event of damage to your property as well as liability for injuries and damage you cause to other people. The Homeowners insurance section of the Insurance Information Institute Web site (www.iii.org) can help you make the right choices about this important form of protection for you and your family.

The cost of insuring a home is constantly increasing so it is important to look at the cost of not only Homeowners insurance but also Flood and Wind insurance in case your Lender requires additional insurance.  Keep in mind that the days of single digit annual increases for Home insurance appear to be over so every homeowner must budget accordingly and figure in the cost of yearly increases in insurance premiums.  Liz Pulliam Weston writes on MSN Money that the farther inland you are, the less you have to worry about large insurance rate increases but if you live in a relatively thin band of land along the coast from Texas to Maine, you are probably facing sharply higher insurance rates for your home.

 If you have purchased a condo or co-op, the bank will require insurance to protect its investment in your home. You may, however, need more insurance to cover your personal items, liability or fees that may be charged to you regarding shared areas of the building like the lobby. To adequately insure your unit it is important to know which structural parts of your home are covered by the condo/co-op association and which are not. You can do this by reading your association’s bylaws and/or proprietary lease. If you have questions, talk to your condo association, insurance professional or family attorney. When purchasing insurance, it is important to find an agent or company that specializes in condominiums or co-ops and also if you insure your unit with the same company that underwrites your building’s insurance policy, you might also get an additional reduction in premiums.