Homeowner’s insurance is required when getting a mortgage on a home (and truthfully homeowner’s insurance should be kept in place even if a home is owned free and clear). You are responsible for picking your insurance provider and this must be done with 72 hours of starting the loan process. We need your Insurance Agent’s name and phone number so we can contact them to get the insurance in place and ensure that we are using the correct insurance figures for the underwriting approval. Not having your insurance done within the first few days will slow down the process.
You Pick Your Insurance
You are welcome (and encouraged) to pick any insurance provider you wish. The only thing we ask is that you stress the importance of your Insurance Agent being responsive to our request for insurance. That said, if you’re shopping for insurance providers you’re welcome to contact PIP Insurance as they offer homeowner’s insurance and have provided great service over the years. To Get A Quote only takes about five to ten minutes. Note: it’s prudent to explore the options of putting all your insurance needs (such as home and auto) with one provider as you’ll maximize your discounts.
Get Loss Report
We want you to close on time and one of the ways you can help yourself is to get your insurance setup in the first 72 hours during the Option Period of the contract. Doing so helps you avoid the last-minute scramble should there be a prior insurance claim on the home. Ask your insurance provider for a past loss report as soon as you have a contract. More and more insurance companies are asking for proof of repairs (i.e. receipts and invoices) for losses within the last three years before an insurance policy can be issued. This can cause issues if the sellers have already packed and moved out. Get your insurance early because when you have time, you have options.
It’s Not Mortgage Insurance
Home owner’s insurance should not be confused with Mortgage Insurance (MI) – they are completely unrelated. Home owner’s insurance protects you and your property in the event of misfortune (ex: if your house burns down, if the home floods, etc.). Mortgage Insurance protects a lender in the case that a borrower defaults and has their home foreclosed.
Please call us if you have any questions about the types of insurance and amounts of coverage required for procuring a home loan.