Insurance
Many buyers will need insurance to protect the purchase of their new home. Insurance may be required by your lender in the event that anything was to happen to your home while they hold a mortgage on your property. Insurance payments will often be escrowed along with taxes by your lender to ensure that they have sufficient funds to make annual insurance premium payments. Before settlement, you’ll want to speak with you insurance provider and your lender to determine just what and how much insurance coverage you need.
If you are purchasing a condo, you’ll likely only need to cover your contents and protect yourself with liability insurance. As part of your condominium fees, you’re paying for a master insurance policy that covers the building in which you live, as well as, all the other buildings in your community. The cost of this coverage is shared by all unit owners. Although your lender will want to see proof that the current coverage is adequate and in force, you’re not likely to need to demonstrate that you have insured your contents. This also applies to some townhomes, but, check with your lender and your insurance agent.
To learn more about insuring your new home, follow any of the links below:
|
