Mortgage Answers / Homebuying Decisions
The Short Answer
Your lender may require homeowners insurance, but its requirements are not the same as choosing all the protection you need. Compare coverage, exclusions, the amount you pay on a claim and the cost. Ask about separate protection for risks a standard policy may not cover.
Choose your situation to see the consequence and a practical next step.
Explore Your OptionsCoverage is more than the price.
An automatic yes
The details still need review.
Start with your priority
Explore a goal below. No contact information needed.
Start with the lender's requirements and the property's risks. A cheaper quote may have different coverage or limits.
Ask the lender which coverage and proof it needs before closing.
Compare policies with an insurance professional, including excluded risks and any separate coverage that may be needed.
Budget the premium and the deductible, the amount you may pay on a covered claim.
Check what the policy covers and what you would pay yourself. A policy name alone does not show the full protection.
Review limits, exclusions and the deductible with your insurance professional.
Confirm whether the quote meets the lender's requirements and when coverage must begin.
Ask which risks need separate attention. Do not assume the standard policy covers every loss.
Insurance changes can affect your home budget and possibly the amount collected with the mortgage payment.
Compare the new bill with the old one and ask the insurer what changed.
Check whether insurance is paid through your mortgage escrow account or directly.
Review the effect on your full home budget. If collected with the mortgage, ask the company handling it about any adjustment.
More than one path
Tap a card to see what matters.
Your lender may require homeowners insurance, but its requirements are not the same as choosing all the protection you need. Compare coverage, exclusions, the amount you pay on a claim and the cost. Ask about separate protection for risks a standard policy may not cover.
Insurance changes can affect your home budget and possibly the amount collected with the mortgage payment.
A mortgage escrow account collects money with your payment for expenses such as property taxes and insurance. Those bills can change, so the escrow portion and total payment can change even with a fixed interest rate.
Not every assistance program has the same first-time-buyer rule. Some programs have their own definition, exceptions and other requirements. Ask about the actual program before assuming you qualify or that past ownership rules you out.
Some loan or assistance programs require an approved homebuyer education course or counseling. Requirements and accepted providers vary. Ask which course, timing and proof apply before paying for or taking a class.
No. Compare coverage, exclusions, limits and the deductible, not just the premium.
It is the amount you may pay yourself on a covered claim. Ask the insurance professional how it works for the proposed policy.
No. Ask which losses are excluded and whether separate coverage is needed for your property.
We were amazed at how quickly Troy closed our home loan. His speedy communication saved us so much time.
Willa Henderson
Fayetteville, NC
We were blown away by how fast and seamless our closing process was with Troy. He locked in a great rate quickly and handled every detail so we could move into our home on schedule!
Yara Mansfield
Show Low, AZ
Troy and his team got us to the closing table in record time. They were super efficient and kept everything moving fast!
Victor Salgado
Boulder, CO
Every buyer's situation is different. Let's find the right path for you.