If you have a homeowner’s policy you will know that there are different types of coverages that exist—but an interesting fact is that J.D. Power & Associates did a study in 2019 and found that 52% of policyholders didn’t know what their policy actually covers! And that meant that homeowners didn’t know both what is covered and what coverages they should actually have for themselves!
Policies usually have Dwelling Coverage as the main part of a policy—which covers your home! Personal Property Coverage, which covers things you own within your home. And Other Structure Coverage, which covers other buildings on your property such as a garage, driveway, fences—anything that isn’t created by nature that is on your property pretty much!
There is another component that is usually a part of a Homeowner’s Insurance policy, and it is very beneficial: Personal Liability Coverage! If you had someone get hurt on your property and it was your fault you would be covered—or if you damaged someone else’s property, you would be covered! It can cover legal fees too!
What isn’t covered on a standard policy is a bit confusing too since you will probably think you will be covered if one of these happens! Acts of God such as earthquakes and flooding are usually not covered, if the sewer backs up into your house you probably aren’t covered, or things like mold/termites in the walls of your home! To get these covered you will have to get a separate policy in order to do so!
What this all means is you should talk to your insurance agent and carrier about everything that you want covered and what policies you will need to get to cover any gaps in coverage! Never be afraid to ask!
Say you want to buy a house you really like, but couldn’t get together such a large down payment—you could get a Private Mortgage Insurance policy along with your mortgage and get into your house without waiting and saving over a long period of time! You’ll be able to get into the home that you really wanted!
the realization that you are above 20% equity paid into the house! That’s when you get rid of your Private Mortgage Insurance policy and you’ll only have your Mortgage Protection Insurance policy (And your mortgage too of course!) to pay for from here on out! Give it a shot and feel good knowing your home is protected!
If you know you have found the house you plan to stay in until you grow old—you should definitely consider getting Mortgage Protection Insurance! Another scenario to consider is if you have a large amount of equity in a property and are still paying your mortgage, you’ll want to make sure it is secure using Mortgage Protection Insurance if anything were to happen to you!
is always worth consideration! Since you are protecting others and their assets, shouldn’t you also protect your own assets?
Private mortgage insurance, often called ‘PMI’, is a type of mortgage insurance you might be required to pay for if you have a conventional mortgage and are unable to make the full 20% down. Like other kinds of mortgage insurance, PMI protects the lender—not you—if you stop making payments on your loan!
yours!
Better business Bureau ®