Homeowner’s Insurance – Twin Cities, Minnesota

Having adequate homeowner’s insurance is a must for every homeowner. If you have a mortgage, like most people do, your lender will insist that you carry homeowner’s insurance to protect their investment. In fact, your mortgage lender will specify the minimum coverage you must have as a condition of your mortgage, and will not fund the loan unless that coverage is in force.

If you’ve made a substantial down payment on the home, you probably won’t be required to pay insurance premiums as part of your monthly payment, but it will still be required. That insurance protects you, as well as the lender, against losses, so most homeowners understand the need for proper insurance. Here are some tips to help you choose a policy that provides the protection you need and satisfies the lender’s requirements:

• Pick Your Own Insurance Company – If you don’t choose your own company and policy for your homeowner’s insurance, your lender will help choose one for you. In almost all cases, it’s better for you to make your own choice. If you already have homeowner’s insurance on your current home, you’ll probably be able to transfer your coverage to your new home. If not, you should shop around carefully to find the right policy at the best price.
• Start Early in Choosing Coverage – After your purchase agreement is signed and your mortgage lender begins finalizing the terms of your loan, you should be given the specifications for the homeowner’s insurance coverage that will be required by the lender. Before the loan closes, you’ll have to show evidence of coverage, so get started right away. It’s always better to select your own insurance coverage than to let the lender assign coverage for you, and it can take some time to select the coverage you want and have it in force by the closing date.
• The Lender’s Minimum Coverage May Not Be Adequate – Mortgage lenders are primarily interested in protecting their investment, and the required coverage will be designed to do just that. However, you will probably want additional coverage to protect your personal property beyond the minimum coverage, along with additional liability coverage and other coverage not required by the lender. Discuss the coverage you want with your insurance agent or agents, if you’re comparing prices. The agent can explain each type of coverage and suggest things you may not have considered. Listen carefully, and think about the coverage being offered so you can make an informed decision.
• Compare Rates for Identical Coverage – When you talk to insurance agents about your homeowner’s insurance, make sure you’re getting prices for the same coverage. Always compare apples to apples when making insurance decisions. Also consider the reputation of the insurance companies. Seek opinions from friends and search on the Internet to see reviews by other customers of the companies you’re considering before making your final decision.
• Ways to Save on Homeowner’s Insurance – Almost all insurance companies will provide discounts on homeowner’s policies. Discounts may be offered for burglar alarm systems, smoke and carbon monoxide detectors and other fire protection equipment, and more. Another money-saving option is to bundle all of your insurance, including homeowner’s insurance, car insurance, umbrella liability policies, and even small business insurance with a single company. It’s worth investigating these discounts and comparing them between companies. Consider all your risks and choose coverage that gives you the best protection for your particular situation.
• Get The Right Documentation – Mortgage lenders will require that you submit the Declarations Page for your homeowner’s insurance policy before funding your mortgage loan. Your insurance agent will supply this, with the starting date for your policy matching the closing date on your new home. Your buyer’s agent, or the title company handling your escrow will request this documentation, and the insurance company will require payment of all or part of the cost of the policy before issuing the document. Work closely with all parties to make sure this is handled in advance of the closing date to avoid closing delays.

Minnesota Real Estate Buyer’s Agents Serving Minneapolis St. Paul

From homeowner’s insurance requirements to every other detail of your home purchase, hiring a buyer’s agent from our REMAX Realty team assures you that every aspect of your transaction will be handled in a timely, professional way.

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Your buyer’s agent will act as your go-between to facilitate the entire process, and make sure that you’re aware of every step and that all paperwork and requirements are completed in time for the closing. Let us show you how we’ve helped thousands of homebuyers through the buying process.