Why Do You Need Home Owner’s Insurance?
If you want to get a mortgage, one of the things you will need to get before the lender will fund the loan is home owner’s insurance.
You will need to have an insurance broker and a policy lined up before close of escrow.
Types Of Insurance Policies On A Home
There are two types of insurance policies issued when you get your new home:
- Home Owner’s Insurance
- Title Insurance
Home owners insurance covers the home against loss due to fire, or any other occurrence that causes damage to the home. What it covers varies policy by policy, and many lenders have minimum coverage standards.
Title insurance covers you against any claims filed against the property, such as a mechanics lien filed by a contractor who did work on the home that they were never paid for. The title company involved with the escrow will issue this policy.
Where to Get Home Owner’s Insurance
It is very simple to get a home owner’s insurance policy, most insurance companies that you use for car insurance also issue them.
We recommend that you check several companies at the same time to compare policy prices, as we have noticed a wide variation of costs for the same coverage on the same home.
An easy way to do this is to use a company such as 2Insure4Less.com, where you can get up to 8 quotes on policies from nationally recognized insurance companies.
This site is easy to use, and you will compare quotes compare rates from multiple carriers, so give 2Insure4Less.com a try!
The mortgage broker you are getting your loan through will require a copy of the home owner’s insurance policy before they will wire transfer the funds to the escrow company for you to buy the home you have written a offer on.
By finding a insurance broker with the best prices now you will have one less thing to worry about at the close of escrow.
Have fun finding your first home!