Just because you live in a state that is a low risk for something like a tornado or a hurricane does not mean you will get away with no high-risk insurance. In fact, you maybe unfortunate enough to live in an area considered a flood plane. If this is the case, most home insurance companies do not even cover flood insurance, but will require you to go through the National Flood Insurance agency.
If you are living in an area where you will need high risk insurance, insurance companies you call regarding premiums will most likely inform you of your needs for insurance and whether or not these will be covered by their basic policy. Be certain that you understand that you may or may not be covered for hurricanes, tornadoes, floods and wind and hail damage resulting from natural disasters.
You may be required to purchase additional insurance, or if the homeowners insurance company does not cover this type of damage, they will refer you to another company that does. Be sure you get covered for high risk insurance right away, because if you wait until hurricane or tornado season arrives to discuss this matter with your insurance company, they will likely not allow you to seek extra coverage.
Something else you need to keep in mind is that different states will have different deductibles and different rates of liability. This should all be explained by a local insurance agent. You can still use a nationwide company, but they will likely refer you to a local agent through their company that deals with your state, county or city specifically.
If you have considered getting by without homeowners insurance, think again. Most mortgage lenders will not even process your home loan paperwork unless you have already signed up for home insurance. Often, they will include your yearly insurance payment in your monthly escrow mortgage payment. This means they will charge you for the amount of the yearly premium and then pay off the homeowners insurance company to insure it gets paid.
When you call to secure insurance for your home, they will ask a series of questions relating to the exterior and interior of your home to determine the value. You will likely be given two different coverage plans, one for the cost to replace the interior of the home and one to replace just the shell of the home, or the exterior. The exterior is usually at least the price you paid when you purchased the home. The interior will include your personal items, as well as appliances.
Different states also have various policies regarding the cancellation of a homeowners insurance policy. Some states will allow for the company to cancel your policy within the first 30-60 days of setting up the policy if the insurance company can provide sufficient reason. Most state laws require that the company inform the policy owner by mailing a 10-day notice. This means that they cannot send you a policy cancellation notice on the same day they cancel your insurance.
If you have had the insurance policy for over 60 days, there are only a few reasons why the policy can be cancelled. Commonly cited reasons include failure to pay the premium or finding out the policy owner had previous charges of fraudulence insurance or home related arson charges.
Mortgage protection insurance comes in a couple of different varieties. With mortgage protection insurance one can protect a home after loss of job or loss of life. Mortgage protection insurance that covers your mortgage payments when you die is really mortgage protection life insurance. This type of mortgage protection insurance may not offer as much as a term life insurance policy, so a comparison should be made between these two types of policies, when deciding how best to protect your family.
Mortgage protection insurance for your life can also be extended to that of your spouse as well and is generally much cheaper than buying two separate policies. When applying for this type of policy, insurers take the applicant’s age, whether they are a smoker or non-smoker, and the value of the death benefits into account. In addition, the premium stays stable over the life of the policy.
The other type of mortgage protection insurance covers mortgage payments during job loss. This type of insurance may not cover self-employed workers or contract workers or active military personnel. Benefits of the job loss mortgage protection insurance may be paid directly to the mortgage company and not the home owner. In addition, some insurers can opt out of writing policies for regions hard hit by lay-offs and high unemployment numbers.
Mortgage protection insurance should not be confused with Private Mortgage Insurance. Private mortgage insurance offers limited protection in that it only pays off a portion of your loan if you default, whereas mortgage protection insurance will pay off your entire loan when you die or helps you with your payments because of job loss. If you’ve purchased a home with less than a 20-percent down payment, your lender most likely required you to purchase private mortgage insurance. Private mortgage insurance will get you into a home, but mortgage protection insurance keeps the payments steady during rough times.