It is a crazy experience when it comes to dealing with a home purchase. The stress can sometimes seem to the rood. Because of this, it is very easy to forget about important things like property insurance. This is essential. The professionals at Trueway Insurance is here to inform you why this type of insurance is so important. We are professionals you can trust, Palm Springs. We also specialize in home insurance quotes.
Is It Required?
You may be wondering if home insurance is required before closing on a sale. Technically, no. If you are paying your home off in cash, that is.
If you are like the rest of us and need to finance your new place, your lender will more than likely require that you purchase at least some homeowners insurance before settling on your mortgage. In most cases, you’ll be asked to provide proof that you’ve prepaid one year’s worth of coverage before the lender will consider closing.
Just like financing or leasing a car, your lender holds a lien on your house until you’ve paid off your mortgage. To safeguard what’s technically their property, lenders often want you to purchase financial protection in the form of a home insurance policy, just in case something bad happens. Ask us about our home insurance quotes.
What Exactly Do You Need To Get Covered With Property Insurance
This amount will vary depending on what your lender requires, but they’ll generally want you to carry enough coverage to pay for the cost of rebuilding your home from the ground up (at the very least), should a disaster occur. There are plenty of other factors to consider, too.
A standard homeowners insurance policy generally protects you against hazards like:
- Fire and lightning
- Damage from hail and windstorms
- Theft and vandalism
- Smoke damage
- Falling objects, like tree branches
- Damage from the weight of ice, snow, or sleet
- Frozen plumbing, heating, AC, or other household systems
- Vehicles (and even aircraft)
- Riots or civil commotions
That is just for your home itself. With homeowners insurance, you may also get automatic coverage for your liability, personal belongings, other structures on your property like carports and fences, additional living expenses if your home becomes temporarily unlivable, and more.
Our advice: pay it all at once. Since most lenders tend to require that you prepay one year’s worth of home coverage before you’ll be able to close your mortgage, it would help to know that you benefit in some way from this sometimes-hefty upfront cost, right? Right. Paying your homeowners insurance premium all at once allows you to exclude that premium from your closing costs, which generally include lender and other fees that you’re responsible for in addition to your down payment. Closing costs are generally paid in one lump sum.
Call Us Today
Trueway Insurance is an insurance company located in Palm Springs. We offer affordable insurance for home, car, among others. We have all the information regarding property insurance. We are here to provide quality for our customers because we believe in the power that insurance can have in any person’s life. If you are interested in learning more about what we can do for you or you have further questions regarding notaries and how they play a part in the insurance process, contact us for home insurance quotes.