So you’re buying a home. Congratulations! Buying a house – whether it’s your first time or your tenth – is a big accomplishment. But, as you likely know, it’s also a lot of work. The home buying process can take quite a while, and you’re likely aware of the many steps and requirements your lender and escrow officer will require. One big part of buying a new home is getting a homeowners insurance policy.
Homeowners insurance is a policy that provides financial protection against disaster like floods, wind storms, earthquakes, poor maintenance, etc. Depending on your insurance carrier and your policy, there may be exceptions to what is covered in your homeowners insurance policy.
Homeowners Insurance – Required by Your Lender
If you’re taking out a mortgage to buy your home, your lender will require – well, a lot from you! You probably already have an idea of the paperwork involved in securing your loan, but your lender will also require that you have a homeowners insurance policy in place before you close your loan.
Don’t worry; buying a homeowners insurance policy isn’t difficult – especially at AMS. We’ll work with you to determine your needs and meet the requirements of your lender. Often, you’ll pay your homeowners insurance premium at the close of escrow, along with a number of other settlement fees. However, this may vary depending on your transaction.
While your lender may give you a homeowners insurance premium quote when you receive your Good Faith Estimate, you are free to shop around to find a policy that suits your needs and budget, along with the requirements of your lender.
Buying a home is an exciting time! And if you’re like many Americans, it’s the biggest investment you’ll ever make. While homeowners insurance may be a “requirement” of closing your mortgage, it’s also a great investment tool because it helps protect a really valuable asset – your new home! Give us a call today and we’ll help you find the right homeowners coverage for you.
Originally posted 2013-08-27 09:55:46.