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    Do I need home insurance?
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    Home insurance is required when you purchase or refinance a property (typically a house). Insurance binders are not required when you purchase or refinance a condominium.
    Home insurance covers the replacement value of the building(s). Premiums will vary depending on the value. Lenders insist on house insurance because the property is their security for the loan. Should your house burn down, the insurance company is required to pay the lender first. You will still own the lot and will then have to re-negotiate with the lending institution to borrow to build a new house. If you rent all or part of your house, be sure to declare this to your insurance company to avoid any future problems arising from insufficient or invalid coverage.
    Discuss with your insurance broker other aspects of house insurance such as: contents, liability, and business coverage if you intend to run a home business.
    So, if you are buying a house (not a condo) we will require confirmation from your insurance company that insurance has been arranged. We get this in the form of an insurance binder that is faxed from your insurance company to us. Just tell them you need an insurance binder, they will know what this means.

    David FeldĀ is an experienced residential real estate lawyer. You can learn more about him by visiting his website:

    Disclaimer: Content on this website is provided for informational purposes only and does not constitute a legal advice.

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