Protect Your Property With Homeowners Insurance

A new home is probably the biggest purchase you will make, and protecting that investment should be your priority. That comes down to purchasing homeowners insurance coverage and understanding your homeowners insurance policy. Not only does homeowners insurance protect your home and your belongings from theft, fire, accidents, and even the weather, but it’s also a necessity to receive a mortgage.

Homeowners insurance is often misunderstood because it protects more than just your physical home and the items inside. For example, did you know homeowners insurance covers an engagement ring lost in New York City, even if you live in Pottsville?

Why Do I Need Homeowners Insurance for a Mortgage?

As part of the new home closing process, you’ll need to provide proof of a homeowners insurance policy covering your home. Why is this necessary? Although you pay a down payment on your new home, your lender is putting up most of the money to purchase the home. Requiring adequate homeowners insurance gives them the peace of mind of knowing that their asset is protected. If your home was lost in a fire or natural disaster and you didn’t have homeowners insurance, your lender would lose out just like you would.

During the mortgage process, your lender will create an escrow account in your name. In addition to paying principal and interest, your monthly mortgage payment will also include a payment to your escrow account. Your lender will use the funds in this account to pay for your property taxes and homeowners’ insurance, as they are due.

Get In Touch Today

Are you in the process of buying your first home? Contact AOA West Insurance today to discuss purchasing homeowners insurance Tigard and surrounding communities trust.

 

AOA West is a fantastic organization. I’ve been happy to work with them for years now and they’ve never let me down, they have always offered prompt and friendly service. Highly recommended. Seano