Homeowner’s insurance

If I’m super careful, do I really need homeowner’s insurance?

Yes. Even if you’re super-duper careful, homeowner’s insurance (which is a type of property insurance) is required. At the very least, you’ll need a policy to cover the remaining principal on your loan/or loan balance. We recommend speaking to your insurance agent to make sure you get the coverage that’s right for you.

Can I pay my own insurance?

In most cases, yes. However, if you have a government loan, your insurance premium must be collected and paid through an escrow account from your lender. Again, we recommend speaking to your insurance agent to make sure you have the coverage best suited for you.

Do I have any choice in the matter?

Of course. You can choose your own insurance carrier. We’ll work with you to make sure they meet certain requirements and they’re providing you with the proper coverage.

What if 15 minutes really can save me 15%?

You can change your insurance carrier at any time? Please notify us by sending a copy of the front page(s) of your new insurance policy. Make sure the page(s) include the insured’s name, address, policy period, location of premises, policy limits, and any other key information.

Types of Insurance

Homeowner’s insurance

Homeowner’s insurance is a type of property insurance. It protects you in the event that your home or belongings are damaged, stolen, or destroyed.

Flood Insurance

Depending on your property’s location, you may need to carry flood insurance. This is determined at the time of loan closing. Flood policies generally need to meet the lower of the following: The full replacement cost of the dwelling and insurable improvements made to it, or the maximum allowed through the National Flood Insurance Program, which is $250,000.

Windstorm/Hurricane Insurance

If you live in a high-risk coastal state, or Hawaii, you may be required to have separate windstorm/hurricane insurance.

Contents insurance 

This covers your personal possessions—for example, furniture, electronics, clothes, etc. While it’s not required, it’s a good idea to have contents insurance just in case the unexpected happens—for example a home burglary or fire. This type of insurance is optional and not included in your payments for your escrow account.

Homeowner Association (HOA) Insurance

If you live in a townhouse, condominium, or other residential area that requires you to pay a homeowner’s association (HOA) fee, you may also be required to purchase extra insurance related to your HOA. In most instances, your insurance fees will be included in your monthly HOA fees. It’s important to note that these policies will likely have restrictions, and you may want to consider additional coverage for items not covered in you HOA policy.


Subsidence Insurance

“Subsidence” is the collapse of land or loss of property due to the sinking of a man-made mine. If you live near an old coal mine, your home is required to have subsidence insurance. If you live in such an area, usually, this coverage is added automatically. If you’re not sure if you need this coverage, call your insurer and they should be able to help you.

Hazard Insurance

If your homeowner’s insurance coverage has lapsed or if we’ve been notified of a policy cancelation, we are required to obtain hazard insurance coverage on your behalf. Often this coverage is more expensive than the coverage you are able to purchase on your own. In addition, it only covers the structure. Your personal property is not included in such coverage. Hazard insurance will always be paid out of escrow The best way to keep this from happening is to make sure your premiums are paid on time and your policies are timely renewed. The great news is that we always send a reminder if your policy is about to expire.