Home insurance serves an important purpose: to provide financial protection against destruction or damage to your home and personal belongings. As such, you’ll want to do everything possible to avoid a home insurance lapse, as this problem may leave you without a financial safety net if your home is destroyed or damaged.
A home insurance policy lapse might last only a day, but a hurricane, tornado or other natural disasters can cause significant damage in seconds. If you lack home insurance at a time when your home is destroyed or damaged, you won’t be covered for any of your losses. Plus, you’ll be forced to pay any costs to repair or replace your residence [...]
A divorce can raise many questions, particularly when it comes to your homeowners’ insurance. For instance, what happens to your homeowners’ policy if you’re staying in the house during divorce proceedings? Are you still covered under your current homeowners’ policy if you begin to live in a new residence? These are just two of the questions that an individual will need to consider when going through a divorce.
When it comes to homeowners’ insurance, there is no reason to be left in the dark. Fortunately, we’re here to help you understand the impact of divorce on your homeowners’ insurance and why you may need to dedicate time and resources to adjust your [...]
Your home is probably the biggest investment you’ve ever made. You’ve spent time, energy and money customizing it to your needs, as well as making it a comfortable place for your family. You’ve even purchased home insurance to ensure that all your belongings are safe and secure. However, what you might not know is that your typical home insurance policy doesn’t cover everything. If an accident occurs or catastrophe strikes and you aren’t protected, your home and everything in it are at risk of being lost forever. To guard yourself and your possessions, you have to be knowledgeable about what’s covered and purchase additional insurance if needed. The following are a few [...]
Finding affordable homeowners insurance is not as simple as it sounds.
Homeowners insurance is all about risk. Insurance companies create algorithms to assess the risk of each property. Once the factors are determined, they decide if the risk of insuring that property is worth the payout if something goes wrong.
Properties that present the lowest risk have the least expensive homeowners insurance. A low risk makes the prospective policy very attractive, so lots of insurance companies want it. It’s the concept of supply and demand—the companies are willing to be competitive with one another to gain your business.
How do insurance companies decide their level of [...]
The need to buy mortgage insurance can be an unpleasant discovery for first-time home buyers who are strapped for cash and can’t put 20 percent down. Mortgage insurance protects the lender — not you — if you stop making payments on your loan.
Mortgage insurance with a conventional loan is called PMI, or private mortgage insurance. Mortgage insurance is required for all Federal Housing Administration (FHA) loans, as well as VA and US Department of Agriculture loans.Mortgage Insurance and Conventional Loans
PMI can help you qualify for a loan that you might not otherwise be able to get. However, it also increases the cost of your loan, and it doesn’t protect you [...]