Home Loan Info

Assisting You In Your Home Loan

Home Insurance

When you own a house, you have to have home insurance. It’s not like a car where if you own it outright you can not have any insurance at all, depending on your state, or just basic insurance. For a home, you must have insurance in case of emergency. What all your insurance covers and how much it costs depend on many different factors. How close do you live to a body of water that will flood during high rainfall, the electronics in your house, age of home, your garage, and many other things factor into the price?

The nice thing is almost all insurance companies these days have discounts for having your car and home, as well as other kinds of insurance, through them. When you get your home, your insurance company comes out to look at it to determine how much insurance you need.

A simple thing as your garage being bigger than normal can change the rate for that part of the insurance. Your first month must be paid prior to signing your paperwork. Of course, if you already own a home and get a new mortgage and sell your house at the same time, the payment will transfer. But depending on the size of the new home it could be more or less.

While you have a home loan, your mortgage payment is part of your loan. It is in the escrow account. If you own your home outright, you will pay your insurance yourself, usually yearly. Different insurance companies charge different rates for the same kind of insurance, just like with a car. So it can pay to shop around. But get a reliable company that has a recommendation from at least one person you know, unless you’ve had the same agent for years and don’t want to switch.

Read your policy to make sure you understand what it includes. If you don’t calculate your total worth of electronics you can fix it later, but it can also change the insurance rate. Go to see your agent knowing what you own and estimated value if you had to replace it. You are asked this. Realize that you can only make so many claims per so many years before your insurance agent will drop you. While insurance is there for when you need it, more claims are bad for you.