I ask not because I do not intend on getting it, but, currently my auto insurance is with Progressive. I have been trying to view quotes for several houses I am interested in. Progressive will not provide quotes for some houses due to various reasons (such as age of house)… Are all insurance companies like that? And is that required when you have a mortgage like it is when you take a loan for a car?
Best reply by DeeDee:
all mortgages will require home owner’s insurance until it is paid off, for the reason that for example if the house burned, the insurance would pay off the mortgage balance with the remainder to the owner. The mortgage holder must be protected for the balance due.
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Do you HAVE to have homeowner’s insurance if you have a mortgage?
They may except some sort of bond or other collateral that will cover any loss. Some state will except that instead of auto liability insurance. Not sure if that is a good comparison though.
Of course you have to. Having a mortgage does not have anything to do with the need to have or not homeowner’s insurance.
Yes..you will be required to produce the cover sheet showing you have adequate coverage at closing or you can’t buy the house – this is for ALL lenders – the reason being is that it is their money and they want to be protected.
Different insurers will have different policies, so some may cover some houses but not others (as you have found out).
Try finding an independent insurance agent that deals with more than one insurance company (not Progressive) and match his/her quotes against what Progressive gives you.
Yes. period.
Not every agency insures every property
1. Yes. You must have homeowners’ insurance. You can shop for it independent of the lender and get one as long as the policy coverage is commensurate with the lender’s requirements. Generally, lender-provided insurance policies are more expensive than if you shop around. Coverage may be denied because of high risk of insurance based on several factors such as high crime rate in the area you live, the condition of the house, location considered being prone to natural disasters, questions about the validity of title/ownership.
2. Automobile lenders likewise require not only state mandated liability insurance, but also require GAP (Guaranteed Asset Protection) insurance upto the amount borrowed to protect against possible non-payment due to death or serious injury to the borrower.
Generally speaking, yes. If you fail to get homeowners insurance within a certain period of time, the Mortgage company will buy it, and bill you (and it will likely be more expensive than if you get it yourself). Not all companies will insure all houses (nor all drivers, nor all cars, etc). You might need to work the other way: find homeowners insurance then find car insurance with the same company to obtain the multi-policy discount.
All home lenders require mortgage insurance and it is usually cheaper if you have your car and home insured by the same company