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Homeowners Insurance – What Consumers must know!
February 19, 2014
Stillwater Home Insurance – It may be overwhelming to search for a new home, searching options online and then driving around to see the homes in person. Once you find the house that you’ll call home, the rushed process of activity begins starting with your offer and ending with the Close of Escrow. During the process, it is important to choose your insurance carrier and obtain a home insurance quote which you’ll give to your Escrow Officer.
Selecting an insurance company and reviewing home insurance options could be bewildering especially if it is your first time; your mortgage company will require insurance and ask you to shop for insurance as soon as possible. The important protection of your new property is a crucial decision that you will make, it need not take ages but an hour in total is plenty to decipher the options and be ready for your Escrow Officer to order the insurance when the time comes. If you have a good real estate agent, he or she will take the time to help you understand the minimum requirements of home insurance; after which, it will be your responsibility to make your selection of carrier and coverage.
Is the mortgage company asking for ‘Hazard Insurance’? Is that Fire Insurance?
In most cases, Home Insurance coverage will be provided by a Homeowners Insurance Policy. If you are purchasing a Rental Home, you will purchase a Landlords Insurance Policy; or if you are purchasing a Condo or Townhome, you will purchase a Condo/Townhome Owners Insurance Policy. The mortgage company is concerned with the protection of the home from the hazard of fire, hail, wind, lightning, water damage, etc. Homeowners Insurance includes coverage for these perils and offers much more than the requirement of the mortgage company. Hazard Insurance is terminology only used in the mortgage industry referring to any type of insurance providing coverage to the asset or collateral.
Apart from the requirement of the mortgage company, you may be interested in protecting your Personal Property which will automatically be covered on home insurance policies to a limited basis; and also Personal Liability Coverage which could be a crucial part of your insurance although only a small percentage of the premium charge.
What other insurance should I be concerned about?
It is important to note that Earthquake Insurance and Flood Insurance are not included on the majority of policies in all States. If the home is located in a Special Flood Hazard Area, your mortgage company will require ‘Flood Insurance’. Flood Insurance is available from the National Flood Insurance Program (division of FEMA); however, most insurance carriers will provide you a Flood Insurance Quote as a servicer for NFIP/FEMA. Flood Insurance premium is fixed and mandated by Congress thus making your process much easier. The difficult part of obtaining Flood Insurance is that in many areas, you will be required to provide an ‘Elevation Certificate’ which states all the specific elevation details regarding the subject property; without this certificate, the correct premium cannot be obtained.
In areas of the country where Earthquakes are more common, you may wish to purchase an Earthquake Insurance Policy.
How much coverage will my house need?
Your mortgage company only requires the amount to cover the loan or the replacement value of the dwelling used as collateral of the loan. Your purchase includes the house, land, fences, driveway, etc. Calculating the replacement value of the home is better figured by the insurance carrier offering the home insurance quote; carriers have software and data assisting them to correctly provide coverage for the replacement of your home. A preferred insurance carrier will not agree to insuring a dwelling for less than the full replacement value.
Why is buying your Home Insurance from Stillwater Insurance so important?
Stillwater Insurance Group, formerly known as Fidelity National Property & Casualty Group, offers far more than the bare bones Fire Policy or hazard insurance requirement. Stillwater Home Insurance can be quoted and purchased directly online offering you the opportunity to research all options; should you prefer personal assistance, a licensed professional will guide you through the process and answer all your questions. It is important to spend the right amount of time to properly insure your assets and to adjust the coverage to give you your desired balance of premium and risk; there is no better person than an insurance professional at Stillwater Insurance to assist with your questions and provide you with your goal of protection.
Home Insurance Online is available at the following link as our Self Service Site:
Numerous articles have been written by HDA Insurance Brokerage about home insurance. This article was specifically written about Stillwater Home Insurance also one of the preferred carriers of HDA Insurance Brokerage in Multiple States.
