Homeowner’s insurance: What you need to know

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Most mortgage lenders require that home buyers take out a homeowner's insurance policy to protect the lender's interest in case there's a fire. It's a good idea to shop for homeowner's insurance soon after you enter into contract to buy a home. Before you start shopping, find out if any claims were made against the property during the past five years. Your insurance agent should have access to a data bank that will give you this information. Or, ask the home sellers directly. If the property has been subject to water damage claims within the past five years, you may have trouble finding an insurer for the property. Or, you may have to pay more for insurance than you anticipated. The inclination is to go with the insurance company that quotes the most competitive premium price. Just make sure that you're collecting and comparing quotes for comparable coverage. It's difficult to find Guaranteed Replacement Cost Coverage anymore. This type of insurance pays the entire cost to rebuild yo...