Owning your home comes with several expenses but managing them correctly can help improve your overall financial picture. There’s a lot of paperwork and several requirements related to homeowner’s insurance and it can all be used to benefit your finances.
There are two types of insurance that you’ll encounter when purchasing a home. One is private mortgage insurance (PMI), which is used by lenders to help protect themselves from borrowers who default on their loans, go into foreclosure, and stop paying. PMI can usually be removed once you have 20% equity in your home.
The second type is homeowner’s insurance, which protects you and your valuable real estate asset. Lenders require you to have insurance on a home you’re purchasing because they want to know that the investment is protected in case of a catastrophic loss. More importantly, homeowner’s insurance is designed to fit your unique situation, providing coverage for the property and also any liability that could arise. Most insurance agents will help you customize your policy and find discounts by bundling insurance products to help you save money.
Homeowner’s insurance and property taxes can be paid through an escrow account that is built into your house payment. This account accumulates the needed money for insurance and taxes on a monthly basis. If you pay homeowner’s insurance and property taxes annually, the needed amount will accumulate in the escrow account so that you have what you need when it comes time to make those payments.
When you’re ready to switch your homeowner’s insurance, give us a call! We’ve been helping clients save money and protect their homes for decades. Our team can make the insuring process smooth and painless so that you can live worry-free. To reach us by phone, call (715) 754-5254 or (920) 822-3695. You can also email us at insurance@premiercommunity.com or visit www.yourpremierinsurance.com to learn more.