HOME OWNERS AND INSURANCES
Nations Investments’ Blog
“Knowledge Is Power”
You will, perhaps, make no larger investment in your lifetime than purchasing a home. As a result, it would behoove you to protect that Investment in every way you possibly can. One of the best ways to do that is through the acquisition of the various Insurances available to Homeowners. These include, but are not limited to:
HARAZRD INSURANCE – This is designed to protect you financially from such issues as:
- Civil unrest or riot
- Damage caused by the weight of ice, sleet, snow
- Falling objects
- Fire & smoke
- Explosions
- Hail
- Power surges
- Theft
- Vandalism
- Water damage (If caused by household appliances or burst pipes)
- Wind
There are three coverages that will protect you and your home from Hazards:
- Dwelling Coverage
- Other Structures Coverage
- Personal Property Coverage
MORTGAGE INSURANCE
The key thing to remember here is that this Insurance protects the lender, not you personally! This is to ensure that the Lender does not lose their investment should you prove to be unable to make your mortgage payments.
Payments for mortgage insurance vary depending on the type of loan you avail yourself to. These variations are detailed below:
- Conventional Loan – Insurance that is typically handled by a Private Company.
- FHA Loan – Mortgage Insurance Premiums are paid to the Federal Housing Admin.
- US Dept. of Agriculture (USDA) Loan – Similar to the FHA Loan.
- VA Loan – In this instance, the Veteran’s Administration guarantees the Mortgage Payments.
FLOOD INSURANCE
The typical Flood Insurance Policy covers damage to:
- The Foundation and Walls of the Structure.
- The Electrical System
- Plumbing
- Central Air & Heating
- Major Kitchen Appliances
- Water Heaters
- Window Blinds
- Dry Walls
As you can see, most of the Insurances thus far could be described as “Major Disaster” Insurance. One other type of insurance you may want to consider, however, will protect you in less-disastrous situations: The Home Warranty. Items typically covered by a Home Warranty include, but may not be limited to:
- Electrical Systems (Wiring, Fuse Boxes, Outlets)
- Plumbing (Water Heater, Pipes, Septic Pump)
- Heating & A/C Units
- Appliances (Washing Machine, Dryer, Refrigerator, Oven/Range, Microwave)
- Roof (Leaks, Dry Rot)
- Electronics (Computers, TV, Gaming Systems)
Some of the insurances we have discussed here can be included as part of your Mortgage Payment. This includes Hazard, Flood, and Mortgage Insurance. However, whether it is part of your mortgage or a separate payment altogether, ensuring that you have proper insurance is an excellent way to enjoy your new home and protect your investment.
For help with all of your Real Estate needs and questions, contact NATIONS INVESTMENTS at 602-675-0897 or follow us on social media links @nationsinvestmentsaz.
This Blog was written, in great part, with information gleaned from the following sources:
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