Home Owners Save Money On Insurance

Blog, Buying, Market Updates
Homeowners insurance protects a homeowner against loss from fire and other hazards that may impair the value of their home. An estimate for the cost of homeowners insurance appears on the lender’s Good Faith Estimate when a borrower is approved for financing. Mortgage lenders require borrowers to carry homeowners insurance not because they are concerned about your home. They make you pay to protect the asset that guarantees your mortgage. However, homeowners don’t have to accept the insurance proposed by a lender and they’re well advised to shop around, because better deals often are available. Shopping for insurance is not as hard as it seems. There are two basic questions to ask any agent or company representative: what losses does your policy cover, and what losses are not covered by the policy? In addition to these questions, you should ask what additional coverage you might need given your situation. Most companies provide a number of additional coverages, often called “riders” or “endorsements”. Examples of additional coverage include such things as jewelry, furs, firearms, and backup of sewers and drains.