How well are you covered? I am referring to Home Owners Insurance (HOI or a.k.a. Hazard Insurance). Whether you are an existing home owner, home buyer or a renter, you need to make sure you are covered.
No, I am not an insurance agent so I can’t advise you on specific amounts or what coverage you may need (unless your buying a condo, your required to get an H06 policy), this is for your agent to discuss with you. What I do want to address, is that HOI is required, needed and shouldn’t be taken lightly.
All too many times I have had clients wait until the last minute to find an insurance company for their homeowner insurance. This can sometimes cause delays and in some cases has cause complications.
How? & Why?
Once your lender gets the evidence of insurance, they will need to add your premium amount to your mortgage payment and will also need to review if there is enough coverage (per investor guideline requirements). Sometimes your coverage may not be enough or it could be too much coverage. If it’s too much coverage and/or your premium is very high, it can then effect your qualifying ratios. You don’t want to run into this problem late in the game.
The last thing you want to be doing is searching for an agent or adjusting your coveragedays or even hours before your closing! Trust me, this has happened.
I highly suggest you start looking for an insurance company/agent early on when you are wanting to buy a home. Discuss with an agent what kind of coverage is best for you and your family. This way you will have it all ready to go when you find a home and are go under contract. *Also check if property is in flood area because you will need to have flood coverage (this can be pricey, so the sooner you find out, the better.)
If you are an existing homeowner, make sure you do the same, sit and discuss your insurance, know what is covered and included in your plan, then adjust if needed.
If your a renter you should get renters insurance, whether you are in an apartment, townhome, condo or house, you want to make sure you have coverage.
When you buy a condo you are required to get an H06 policy (walls in). Make sure to discuss this with your agent.
Bottom line, don’t be left under covered. And please make sure to research for insurance company/agent early on when you are purchasing a home.
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~Cheers
Ray Williams
