Homeowners insurance

"What is this? And am I required to have it?"

Insurance that covers damage to the insureds' residence and liability claims made against the insured subject to the policy terms, conditions, provisions, losses not insured provision and exclusions.

Home Owner's insurance is also referred to as Hazard Insurance.

Yes, it is a requirement to have homeowner's insurance. Basic insurance usually only needs to cover the cost of replacement of the structure.

Homeowner's insurance can vary from locale to locale. It all depends on what the insurance will be covering as well as where the home is located.

Check with the agent that insures your vehicle. You can usually get a better discounted rate by insuring your car and vehicle with one company.

You will likely want homeowner's insurance whether the lender requires you to have it or not. After all, you will be owning a valuable asset that you will also be living in. If your home burns down, where will you live? And how will you rebuild?

The Lender always requires that the Homeowners Insurance covers at least the amount of the loan.
Check with your lender for additional requirements.

Homeowners insurance is one thing a homeowner can't afford to skimp on. Aside from being a lender requirement, a good policy can go far in protecting you in the event of a major loss. Even a minor loss can set you back some money and peace of mind. Lenders will require that you have enough insurance to cover the cost of the loan. Talk to a good independent agent to see what replacement cost values are in your area. See what is offered to protect your home in the event of a catastrophe or liability for an injury to a visitor to your home. Play it safe for yourself and your family.

Things that can lower your premiums:
* The higher the deductible, the lower your monthly premium will be. It doesn’t make sense to have any deductible below $500 or $1000 because you won’t want to put in claims for low-cost items, anyway.
* Bundle auto and homeowners insurance
* Smoke detector
* Burglar Alarm system
* Fire alarm: Centrally monitored, local (rings only at home).
* Alarm System: Centrally monitored vs. rings only at home (local).
* Distance to Fire Hydrants
* Distance to Fire Station
* Inside or Outside City Limits
* Storm Shutters
* New Home Discount (the age of your home matters)

If you let your homeowners insurance policy lapse some lenders will put their own policy in force. These lender policies are extremely expensive and are no benefit to the borrower. To avoid this unnecessary occurrence pay your hoe owners insurance policy on time and keep the account in good standing.

When purchasing a home the lender will require your homeowners insurance be paid in full for one year prior to closing.

Actually homeowners is not required UNLESS your lender makes it a condition. If you have no lender...then you are not required to have homeowners (unless you belong to an association in which case that would be part of your monthly homeowners fee).

Homeowners insurance provides protection if there is damage to your property. Homeowners insurance also provides protection if you cause injuries or damage to other people.

» DISCLAIMER: The information contained in this article on 'Homeowners insurance' is a collection of contributions by licensed mortgage professionals and is not the opinion of Broker Outpost LLC. Always consult a licensed professional before applying for a mortgage.