Gregory Murphy - WEICHERT, REALTORS® - Briarwood Real Estate



Posted by Gregory Murphy on 4/11/2019

You may know that when you buy a home, you should purchase homeowner’s insurance. You may have never wondered if the coverage is required. Usually, insurance will be taken out of escrow and a part of our monthly mortgage payment. You may pay a yearly premium separate from your mortgage payment. Home insurance is a nuisance so if you could find a way around it should you forego it?   


You can legally buy a home without a home insurance policy, but if the house is financed with a lender, the mortgage company usually requires that you have insurance on the property. A lender can also request that your home carry additional policies such as earthquake or flood insurance. There are minimums you must meet based on the value of your home and the lender you do business with. These standards exist so that you as the homeowner will have enough coverage to replace the property should it be a total loss in some type of natural disaster or fire.  


The amount of coverage you need depends on how big the mortgage is that you have taken out. There are certain supplemental coverages that may not be required yet are sensible to carry. These extra coverages include:


Personal liability coverage

Personal property coverage


The good news is that as a homeowner you have a choice. You can shop around and see which insurance companies will give you the best coverage for the lowest price. 


The bottom line is that you shouldn’t risk going without home insurance. Even if your loan company allows you to cancel your home insurance after a certain point, the risk is really not worth saving money. Without coverage or permission to cancel coverage, there is a chance your mortgage company could put your loan into default. 


High deductible, basic insurance policies are better than nothing. If you’re going to pay a premium for home insurance, you should look into getting the coverage that makes the most sense for you and your family. You don’t need over the top coverage amounts, but you should aim for comprehensive protection for your property. The key is to balance the cost of your insurance with the value of the property. If your house burned down, you’d want to know that you could replace your property without worry. If you didn’t have insurance, you could really face some issues. You may not want to pay for home insurance, but you genuinely need it. Make sure you understand your coverages.                





Posted by Gregory Murphy on 11/23/2017

Homeowners insurance is necessary, but that doesn't mean you should be forced to pay an exorbitant amount for it. Instead, you can take advantage of the following money-saving tips to lower your monthly homeowners insurance premiums: 1. Bundle Your Homeowners and Auto Insurance. In many cases, you can bundle your homeowners and auto insurance to save money. This will allow you to cut costs and leverage the same insurance company for both your homeowners and auto insurance policies as well. If you already have auto insurance and are looking for home insurance for your new residence, be sure to discuss your plans with your auto insurer. By doing so, you may be able to bundle your homeowners and auto insurance and lower your insurance premiums for years to come. 2. Explore All of the Options at Your Disposal. When it comes to finding homeowners insurance, there are plenty of fish in the sea. Thus, you're sure to discover many great options at your disposal, all of which you should explore before you decide on a homeowners insurance provider. With homeowners insurance, you should try to conduct plenty of research. And remember, the most affordable option may not be the best option based on your homeownership needs. Therefore, homeowners who do their homework will be able to review all of the options at their disposal and make an informed decision about their homeowners insurance. 3. Exclude Land Value from Your Homeowners Insurance Policy. Your homeowners insurance may include the value of your land as well as your residence. In this scenario, you may want to consider removing the land value from your policy. With homeowners insurance, you'll want to ensure that your residence and its contents are fully covered. That way, these items can be replaced if they are damaged. On the other hand, you may not need replacement coverage for your land. Before you exclude land value from your homeowners insurance, however, you'll want to discuss the pros and cons of doing so with an insurance agent. This professional will be able to outline how much money you can save by making this change, along with the short- and long-term ramifications of this decision. 4. Increase Your Deductible. Boosting your homeowners insurance policy's deductible likely will result in a drop in your monthly premium. At the same time, it is important to consider the trade-off that takes place if you make this change to your policy. A higher deductible means that you'll be required to pay more out of pocket if and when a claim is filed. As such, you should weigh the immediate cost savings versus the long-term value of increasing your deductible before you finalize your decision. Homeowners insurance can be tricky to understand, but insurance agents can help you discover the best ways to lower your monthly premiums. Ask your insurance agent for help with your homeowners insurance, and ultimately, you can work with this professional to find solutions to help you save money on your insurance premiums.







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