INSURANCE AGENCY NETWORK Blog
If you're shopping for your dream home, one of your bank or lender's requirements for getting a home mortgage would be insurance. Thorough insurance coverage is essential, but it is also possible that you may have excessive coverage. How do you know what types of insurance are necessary when you buy a home?
Here are five types of insurance every homeowner should have:
Homeowners insurance, also known as hazard insurance, is a form of property insurance that covers casualties and damages to an individual's house and assets in the home. This insurance is what most lenders usually will require you to have. A homeowners' insurance may include coverage for your:
Homeowners and mortgage insurance are both types of insurance you are likely to encounter during the mortgage process. However, this policy does not cover you. Mortgage insurance, also called private mortgage insurance (PMI), gives your lender confidence that you can afford your mortgage despite a lower down payment (usually less than 20% of your home's value).
Title insurance protects you and lenders from financial loss due to faults in a title to a property. No title insurance exposes transacting parties to significant risk when a title defect is present. Additionally, the possible financial burden may rest solely on you.
Before buying a new home, ensure your new property is in an area not prone to disasters. If it is in a zone designated as high-risk for flooding, your mortgage lender may require you to get flood insurance. However, it may be up to you to choose whether to add protection from this policy.
Buying a new home isn't always easy, as many legal and financial issues come with it. Legal insurance enables you to reach out to experts who can help resolve legal matters and provide advice to help avoid legal problems.
Having insurance may protect you from life's unexpected turns, but there are numerous insurance options on the market today. To know which insurance is necessary for you, you should think carefully and ask one of our expert agents for advice if needed.
At Insurance Agency Network, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (425) 448-9190 or Click Here to request a free quote. Topics and coverage discussed in this article are not guaranteed, consult with your agents to determine what your policy does and does not cover. We are more than happy to help!