The insurance for homeowners or “Hazard Insurance”, is a service that offers to cover the expenses of the property, in case it presents some damages such as fires, or losses such as thefts. It is important to note that this property insurance does not include damage due to earthquakes or floods, however, these causes can be included in your insurance if you wish.
When buying a home through a mortgage, the lender may have concerns about the state and protection of your home, which is why homeowners insurance arises, as a way to guarantee the lender that your home will be safe and in good condition, in any case.
In fact, lenders generally require that you own this type of insurance, in order to complete the business. The most used way to pay for this type of property insurance is to include it in your monthly mortgage payment, where said amount corresponding to property insurance will be stored in an “Escrow” account, which will be managed by your lender when you I require it.
An “Escrow” account is an escrow account, which will be managed by the lender, only for expenses associated with the property. The advantage of paying through these types of accounts is that you gradually accumulate a monthly money to pay for your homeowners insurance service, so that when the time comes to pay it, the money is already ready and accumulated, and not You have to pay a large amount of money at once.
And ready! This way, once you accept and close the contract, you will have already bought the homeowners insurance. Similarly, if you want to investigate other property insurance on your own and compare prices, you can also do it without any problem.
It is always a good idea for you to buy property insurance for your home, because that way you make sure you agree with the price and the type of plan you want, otherwise, if you do not have Sure, your lender will be able to buy one, and then charge you for it. Also, if the insurance is purchased by your lender, it is likely to cover you and not you or the damages associated with you.
It is important to establish that homeowners insurance is not the same as mortgage insurance, since the first protects the property from damage, and the second protects the lender in case the borrower lags in payments.
Prevention is always better than regret, so remember to associate this insurance service for homeowners when buying your home, because in a community like the family, certain accidents can occur along the way, such as: a Broken wall by accident, a fire, or even a fissure in the floor, so in this way you would be preventing each of these everyday accidents.