Free Insurance Quotes - There are many ways to receive free insurance quotes. You can directly contact a homeowners insurance agent and obtain quotes yourself, you can see if your mortgage professional has any homeowners insurance agents that he/she can get you a free quote from, and you can shop online for free insurance quotes. Your homeowners insurance, also referred to as hazard insurance, will affect your monthly mortgage payment if you are including your taxes and insurance into your mortgage payment. If you include insurance in your mortgage payment, the higher your insurance premium, the higher your monthly mortgage payment will be.
You get a free insurance quotes when you apply for a new mortgage. Insurance agents will shop for the best free insurance quote for you.
Insurance: How much does a homeowner need? - Insurance: How much does a homeowner need?
Everybody who owns a home should get insurance on their property, and everyone who has a mortgage on their home must get an insurance policy. The lender makes you to carry a policy that covers fire and hazard insurance in order to protect their investment.
To really measure how much you need you need to discuss your situation with a seasoned property insurance professional. Contact me at info@TheMortgageU.com and I would be more then happy to refer you to a reputable, honest property insurance representative.
If you are refinancing your property and the value of the home has increased substantially from the last time you insured it against hazards, it may be advisable an in many cases necessary to increase the coverage amounts and limits on your homeowner's insurance to make sure you can rebuild the property at current market rates for replacement cost.
If you are refinancing, most lenders will require your coverage to be at least in the amount of your new mortgage loan. Ask your mortgage professional to review your mortgage declaration page and consult with your insurance agent.
It is important to understand that homeowners insurance is designed to rebuild the home, replace personal property and protect the homeowners from liability claims. The insurance limit may be different than the market value of your home.
Do I Have To Buy Hazard Insurance? - If you have a mortgage on you home, you will have to buy hazard insurance, also known as homeowner insurance. Hazard insurance protects against losses due to most perils. As a financier of your home, banks require you to have insurance coverage in place to protect their investment. In addition, as a condition to granting the mortgage, banks require that you name them as a "mortgagee" on the insurance policy, which entitles the bank to be the payee in case of a loss.
Also if you are refinancing an exisitng mortgage, and the new loan amount is higher than the current mortgage, you may have to increase your coverage. Your lender will work with the title or escrow company to make sure the coverage is adequate for the new loan.
It is wise to get quotes from several different insurance companies before committing to one. You may be able to save money by having your house and your car insured by the same company. You can also ask your mortgage professional to recommend an insurer.
Homeowners insurance, also referred to as hazard insurance, is different than mortgage insurance, also known as PMI or private mortgage insurance. It is very important to know the difference between the two. Homeowners insurance protects you, the homeowner, in case your house catches fire, your home is broken into, a water pipe bursts, etc... Private mortgage insurance is not required on all mortgages, usually only mortgages that do not have a minimum of 20% equity in them, and safeguards the lender in case of a default of your loan by you. PMI protects the lender, not you. There are ways around having to obtain PMI if you do not have the required 20% down payment or equity in your home, so consult your mortgage broker today and discover what your options really are.
If you are purchasing a home, a lender will typically require one full year of hazard insurance paid up-front before the loan is closed. They will ask to see the paid receipt from the insurance company before the final closing.