Purchasing A New Home And The Insurance question

It is the American dream to own your home. I remember after I had purchased my first home that I was filled with a sense of having arrived, that I had truly accomplished something. I do not had to worry about somebody kicking me out of my place because they were selling the property or something similar. It is a massive sense of security. It was also the largest financial investment that I ever made, and of course I purchased insurance on the property.
Now let's examine just what home insurance should and shouldn't cover. The state of New Mexico, especially on the eastern side of the state, is subject to serious windstorms and sometimes hail tempests. These are simply covered under any home insurance policy ; in addition fire, explosion, lightning, smoke, and vandalism are covered under nearly all insurance programmes. There are even some risks that are covered that are particularly improbable in New Mexico, for example volcanic eruption, that are covered by almost all policies.
What is not covered under almost any policy is flood. Flood needs a special policy that is separate and apart from the house owner's policy. Not everybody in the state wishes to buy flood insurance, but it's a good idea to have a look at the flood plain and examine the flood history for your property. Remember too that with construction and the building of culverts the flood plain can change in an exceedingly big hurry. New Mexico is especially prone to flash floods and these are seriously influenced by construction and blocked culverts and drainage areas.
When asking for a householder's policy make sure that you do in fact get a quote on a house owner's policy and not a dwelling policy. The coverage difference can be substantial ; additionally, ensure that you request an HO3 policy. The HO stands for house owner's policy, and the three stands for the policy form. There are a few policy forms out there, particularly 1,2, and 3, with one providing the smallest amount of coverage and form three providing the most amount of coverage. The price difference really isn't that much, so an HO3 is really the sole way to go.
Any policy form that starts with DP is a dwelling policy. These policies are customarily reserved for rental properties or properties found in a condition of disrepair. Try to stay away from these if at all practical.
So that the best advise that I am able to give is to be sure that you home is correctly protected and ask your agent if the product offered is an HO3 or not.

At ABC Insurance Services we sells New Mexico property insurance. When you are choosing an agent make sure you choose the Right agent. New Mexico home insurance is our speciality.