One of the biggest investments you will ever make in your lifetime is the purchase of your home. For that reason, many people have to take out a mortgage and pay for it (and the interest) in installments. With a home mortgage, that monthly installment payment is made up of several things, including your property taxes and insurance. The most common type of insurance lumped into your monthly payment will be mortgage insurance (if your lender requires you to have a mortgage insurance policy) and homeowners insurance.
The lender typically chooses the mortgage insurance policy, but either party can choose a homeowners insurance policy. You as the borrower should always take the initiative and choose your own homeowners insurance carrier. By allowing your loan officer or lender to choose your homeowners insurance policy (which they may offer to do as a convenience to you), you are defaulting to whoever they choose, and while that choice may be a good one, that doesn't mean it offers adequate coverage for your unique needs or is the one that is most affordable.
A good rule of thumb is to interview 2-3 local insurance agents and ask them to provide you with a quote or estimate. In some cases, they may be able to bundle your automobile and home insurance which could result in substantial annual savings.
If you're wondering where to begin, we would be happy to share some names and phone numbers with you for insurance agents that we know and trust. Give us a call at 888-61-TRIAD.
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