Buyer education - keep this one
Homeowners Insurance, Explained
Your lender requires a homeowners policy in place before you close, and the timing and structure surprise a lot of buyers. Here is what your lender needs, when the paperwork is due, how the first year and escrow work, and what to ask your agent. This is educational only - your insurance agent is the one licensed to advise on coverage.
In short, {{facts.whyRequired}}. Your policy also needs {{facts.mortgageeClause}}, so the lender's interest is protected alongside yours.
Your insurance binder - proof of coverage - is typically due {{facts.binderLeadTime}}. It goes to {{facts.binderGoesTo}}, not to you, so {{facts.bindingUrgencyNote}}.
Year one premium and escrow
It is {{facts.yearOnePremium}}.
That means {{facts.escrowMechanic}}.
Your escrow account carries {{facts.escrowCushion}}.
Your account is {{facts.escrowReview}}.
Dwelling coverage is not your loan amount
Your dwelling coverage amount is based on {{facts.coverageBasis}}. That figure is set by {{facts.whoSetsDwelling}}.
Deductible tradeoff
Here is the tradeoff: {{facts.deductibleTradeoff}}. Ask your agent to walk through a few deductible options side by side.
Wind and hail
Ask your agent whether your policy carries {{facts.windHailNote}}. It works differently from your standard deductible.
Seven questions for your insurance agent
- Is this quote replacement cost or actual cash value?
- What is my deductible, and is wind or hail separate?
- Does this policy include water backup?
- Is there ordinance and law coverage if code changed since the house was built?
- What is excluded that I would assume is covered?
- How does my premium change if I raise the deductible?
- What discounts apply if I bundle or add monitored alarms?
Revisit your coverage {{facts.reviewTrigger}}.
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