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TYPES OF INSURANCE
Mortgage Insurance
This insurance is typically required when you obtain a mortgage for more than
80% of the value of your home, and is designed to protect the Lender in the
event that you default on your loan. (The lower the down payment, the greater
the risk for the Lender).
There are alternative loans which can eliminate the need
for this added expense. I rarely recommend loans requiring "MI".
Mortgage Life Insurance
This insurance is designed to provide you with protection against default in the event you or your spouse passes away during the life of the loan and while the policy is in effect. Many factors need to be considered when obtaining Mortgage Life insurance - consult your professional insurance agent for more information. Financial advisors seriously question the value of this type of insurance.
HomeOwners Insurance
This insurance is designed to provide you with coverage against property loss or damage in the event of an incident which would potentially cause harm to your property or the contents therein. Many options and limits need to be considered when obtaining Homeowners insurance - consult your professional insurance agent for more information.
Earthquake and Flood Insurance
Both of these special additions to Home Owners Insurance are valuable protectors of your home's equity in the case of disasters. Your Home Owner Insurance carrier can quote their costs. Often, they charge less each year than you would pay to replace one couch.
Title Insurance
This insurance is provided as a guarantee in regards to the accuracy of the Title work done on your property prior to approval of funding. If you would like to learn more about Title Insurance and how it affects your loan process, I am available to answer any questions you may have.
Do I need H.O. Insurance if I have a Condo?
This is a definite "yes" answer. Most HOA Policies only cover the structure and very basic interior finishes. You need to cover your furnishings, electronics, custom finishes like marble or tile.
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