Are you buying a home and you're now looking into home insurance? If so, you likely have the following questions about it.
Is Homeowners Insurance Required When You Own A Home?
The requirement for having home insurance really depends on your financing situation. Anybody that has a mortgage will be required to have homeowners insurance. This is because the home belongs to the lender until the mortgage is completely paid off, which is when it will belong to you. They want to protect the home in case something were to happen to it, such as losing the home to a house fire.
Homeowners insurance is no longer required once you've paid off the mortgage or when you pay for your home all in cash.
How Do You Pay For Homeowners Insurance?
There are a few different ways that you can actually pay for your homeowners insurance. If you have an escrow account for your mortgage and property taxes, chances are that the cost of your home insurance will be included in your escrow account as well. All of your costs for the year are averaged out and you'll pay for it slowly each month until the next renewal period.
If you are paying the insurance company directly, you may have the option to make annual, semi-annual, quarterly, or monthly payments. Keep in mind that you may get a discount for making an annual payment at the time that you purchase your policy.
Are You Required To Get Flood Insurance?
Flood insurance is only going to be required if you live in a FEMA identified flood zone. Chances are that you'll be made aware of this during the home buying process, since it is a big deal and your realtor will want to make you aware of the risks.
However, you can still buy flood insurance even if you do not live in a flood zone. Flood insurance covers you from any instance where water enters your home through the dwelling, which can include rising rain water from the street.
How Can You Save On Home Insurance?
It's always worth asking your insurance agent about how you can save money on your policy. While there are many things that are likely out of your control, such as the age of the home, there are plenty of things that you can control. If you plan to install a security system, add deadbolts to exterior doors, or make home renovations that improve the structure's safety, definitely let your insurance agent know. These things can reduce the risk of you making a claim and result in a lower premium.
For more information on homeowners insurance, contact a company like Ronald H. Krupa Insurance Agency.
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