Buyer's Insurance 

Buying a home can be overwhelming, especially when it comes to homeowners insurance. We have four tips to guide you through this process. We are here to help!  

1. Contract at least three local insurance companies to compare coverageYour mortgage lender can, and probably will, require you to have homeowners insurance. You may be required to purchase additional insurance You aren’t required to buy from a particular insurance company. Instead, compare coverage, price and customer reviews. Be sure you get the right type and amount of coverage. Shop for value, not necessarily rock-bottom price. Since you'll mainly deal with insurance companies during times of disaster, make sure the company you choose has great customer service reviews. Cash buyer are not required to buy insurance to close in Florida.
2. Escrow your insurance payments with your mortgage payments. If you're like most homeowners, you’ll tack monthly insurance payments onto your mortgage check. The lender will pay your insurance premiums (usually your property taxes, too) out of your escrow account. Lenders prefer this option because it lets them know your insurance premiums are being paid, and their investment is well protected. Most likely, you’ll need to pay for one year of insurance at closing. Bring information about the insurance policy you have chosen and the money to cover the first year's premium.
3. Make sure you're getting adequate coverage. The most important part of homeowners insurance is the level of coverage. Avoid paying for more then you need.

4. Understand the details of your policy. There is no such thing as Hurricane insurance in Florida. You will need a Wind, Homeowners(Fire, theft, liability) and Flood  It’s not enough to get the right policy level. Before you make a decision, understand these homeowners insurance terms: 

 

Homeowner's Insurance
This insurance covers replacement costs for damages caused by fire, wind or other disaster that might affect the value of the property. Typically, the insurance also includes personal liability and theft coverage.

Flood Insurance
Additional hazard insurance coverage that is required for homes located in a designated hazard zone as established by the Federal Emergency Management Agency (FEMA). As we tour houses, I will let you know if the property resides in a hazard zone.

Private Mortgage Insurance (PMI)
Insurance required for conventional mortgage loans when the borrower's down payment on the house is less than 20 percent of the loan value.

Title Insurance
This policy protects both the buyer and lender by insuring a clear chain of title. (In other words, it insures that that the person who sells the house has the legal right to do so.)