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Home Insurance is form of risk transference. For a stated premium you transfer the risk of loss for the specified covered perils to another party. Namely, the Insurance Company.
Suppose you have no home insurance, and you have a kitchen fire that grows into a total loss of your home. You would be left with a pile of ashes that you can not live in and still owing thousands of dollars to a mortgage company for a home that no longer exists.
So long as you have the appropriate coverage your insurer would cover your losses and provide funds to repair or even replace you home if necessary.
Additionally most Home Mortgage companies require as a part of your home mortgage contract that you maintain a home hazard insurance policy to protect you and the mortgage company from just this type of loss.
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∙ 12y ago
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Is it wise to porcure a home equity loan at age 66 and not insure it?
Depends on the insurance you are referring to. 1) Mortgage Insurance does not benefit the borrower; it benefits the lender. 2) Property Insurance will be required by the lender. 3) Credit Insurance pays the debt if a short list of issues befalls the borrower. Read the contract carefully and make sure your existing insurance and state/federal programs do not already offer the same coverage. This type of insurance is like an extended warranty: usually a rip-off unless you find yourself needing it.
Do I need homeowners Insurance after I pay off my mortgage?
Only a lien holder can require a borrower to carry insurance.
What does PMI stand for when referring to insurance?
With regards to insurance, the acronym PMI stands for Private Mortgage Insurance. This is an insurace where the borrower of a mortgage pays a premium, but if the borrower defaults, the lender gets the money. This helps protect the lender in cases of larger mortgage values.
What are the advantages of getting a second home mortgage?
A second mortgage allows the borrower access to money at an advantageous interest rate. It makes use of the equity built up in a home as collateral, which is considered a safer investment by lenders.
Does private mortgage insurance change the foreclosure or deed in lieu proceedings?
Private mortgage insurance or PMI is insurance to protect the lender if the home is foreclosed upon and there is a deficiency. That deficiency is paid by the insurance company. It would not appear to have an effect on the foreclosure proceeding, just on your liability for a deficiency. However it is to your advantage also to have MI if your house goes into foreclosure. Not only do they pay the lender and cure a portion of the definciency, but often they get involved up front and try to work with the borrower and lender both to avert the foreclosure. That way they are paying a lower claim and the borrower gets to keep their house. I've even heard of the insurance company helping the borrower get short term loans, renegotiate the mortgage or helping them find a buyer.
Why home insurance is integral part of the real estate loan package?
because it benefits both the lender and borrower.
What are the advantages of home insurance for the the lender and the economy?
many people thier houses will be covered by insurance company
What are some advantages of having a Privilege home insurance?
Some advantages of having a Privilege home insurance are the sum insured for your home, garage and shed, rebuilding of a new house, cover to accidental damage to glass windows and mirrors and other building coverage for your home.
What does an FHA borrower's housing expense include?
You mortgage princple and interest, property taxes (city and stae if applicable), fha mortgage insurance, home owners insurance and any fees due for a community (home owners asociations).
Do I need homeowners Insurance after I pay off my mortgage?
Only a lien holder can require a borrower to carry insurance.
Is it wise to porcure a home equity loan at age 66 and not insure it?
Depends on the insurance you are referring to. 1) Mortgage Insurance does not benefit the borrower; it benefits the lender. 2) Property Insurance will be required by the lender. 3) Credit Insurance pays the debt if a short list of issues befalls the borrower. Read the contract carefully and make sure your existing insurance and state/federal programs do not already offer the same coverage. This type of insurance is like an extended warranty: usually a rip-off unless you find yourself needing it.
What does PMI stand for when referring to insurance?
With regards to insurance, the acronym PMI stands for Private Mortgage Insurance. This is an insurace where the borrower of a mortgage pays a premium, but if the borrower defaults, the lender gets the money. This helps protect the lender in cases of larger mortgage values.
Are there any obvious advantages to purchasing cheap mobile home insurance?
The only obvious advantage to purchasing cheap mobile home insurance is that you have low payments, which means more money in your pocket. If you want cheap mobile home insurance the thing to do is to increase your deductible.
What are the advantages of getting a second home mortgage?
A second mortgage allows the borrower access to money at an advantageous interest rate. It makes use of the equity built up in a home as collateral, which is considered a safer investment by lenders.
What are the advantages to looking online for quotes on home insurance?
Looking online for quotes on home insurance can be advantageous to the shopper because it allows them to shop and compare pricing amongst the most insurance companies as possible guaranteeing the best possible price and service.
What is the advantages of insurance policies?
kindly answer me the advantages of insurance policies, the mutual funds and also equity
Can a co borrower on a home file bankruptcy?
Sure. And yes, it will involve the property and credit of the other co-borrower.
