☰ ˟
Fort Campbell Office (931) 431-3677
Clarksville Office (931) 503-0015
  • Home
  • Quotes
    • Auto Quote Form
    • Commercial Auto Quote Form
    • Homeowners Quote Form
    • Life Quote Form
    • RV, Boat & Motorcycle Insurance Quote Form
    • Renters Quote Form
    • Watercraft & Boat Quote Form
  • Products
    • Auto Insurance
    • Boat Insurance
    • Commercial Auto Insurance
    • Collision Insurance
    • Comprehensive Insurance
    • Homeowners Insurance
    • Life Insurance
    • Motorcycle Insurance
    • RV Insurance
    • Renters Insurance
    • Full Coverage Insurance
    • Benefits of Bundling
  • Customer Service
  • Payments
  • Blog
  • Resources
    • File a Claim
    • Important Links
    • Refer a Friend
    • Calculators
    • Free Reports
    • News Center
    • Videos
  • About Us
    • About Augustine Insurance
    • Our Locations
    • Employee Directory
    • Customer Testimonials
    • Privacy Policy
  • Areas We Serve
    • Clarksville
    • Fort Campbell
  • Contact
    • Contact Us
    • Join Our Newsletter
Augustine Insurance Group
Get A Quote
LEARN ABOUT COVERAGE:
Auto Home Life Commercial Auto Boat
Home > Blog > Your Lender’s Requirements For Home Insurance
THURSDAY, AUGUST 22, 2019

Your Lender’s Requirements For Home Insurance

Mortgage Agreement

Kentucky's median home value is $146,000, and in Hopkinsville, the median listing price is $149,900, with median sales falling at $94,300. However, it's important to note that homes are investments. When you buy a house, you are going to spend money on it, and you will continue to do so over the years.

But it's not just you who will make this investment. It might also be the investment of a mortgage lender. Since these parties have a stake in your home, they might require you to get homeowners insurance. Here's what you can expect if you face this requirement.

Why Lenders Require Homeowners Insurance

A mortgage is a mechanism that helps millions of Americans afford to buy homes. By taking out the loan with a bank or other lender, buyers agree to pay off the value of that home over time. There is currently more than $10 trillion in mortgage debt in the United States, and the average new mortgage cost is $260,000.

The fact that you agree to pay off the value of the home to a bank over a period of years clearly shows that the bank has an investment in your home as much as you do. Should a fire damage it, for example, then you might face problems paying for repairs — putting your mortgage at risk of default. Therefore, the bank wants to protect your home as much as you do. This is why they will likely require you to buy homeowners insurance.

What You Might Have To Pay

When your lender requires you to buy homeowners insurance, you'll probably face a few different conditions you must meet.

  • You'll probably have to buy structure coverage, usually for the home's replacement cost value. This coverage can help you afford to repair or rebuild your home to exactly as it was before the accident. Therefore, the property value can remain secure.
  • You might have to carry damage deductibles of certain levels.
  • In many cases, your lender will require that pay your premium in-full at the start of your policy's term. Some insurers allow you to pay your premiums by month, however.
  • You'll often have to pay the insurance premium from a mortgage escrow account. The structure of the account greatly lowers your risk of missing the premium payment.

One benefit to this requirement is that many lenders allow homeowners to pay their premiums and mortgage payments in one sum. Talk to your lender to see how you can structure your mortgage and insurance requirements to find the most-appropriate solution for you.

Contact Us

Posted 10:00 AM

Tags: home insurance, augustine insurance
Share |


No Comments


Post a Comment
Required
Required (Not Displayed)
Required


All comments are moderated and stripped of HTML.

NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2022
  • 2021
  • 2020
  • 2019
  • 2018
  • 2017
  • 2016
  • 2015
  • 2014
  • 2013
  • 2012
  • 2011

  • augustine insurance(22)
  • home insurance(15)
  • car insurance(14)
  • auto insurance(13)
  • augustine insurance group(11)
  • motorcycle insurance(6)
  • boat insurance(6)
  • covid-19(5)
  • fort campbell(4)
  • insurance(3)
  • renters insurance(2)
  • augustine insruance(2)
  • homeowners insurance(2)
  • tennessee(1)
  • auto insurance rates and safety(1)
  • life insurance(1)
  • premiums(1)
  • safety(1)
  • rates(1)
  • boat(1)
  • hopkinsville(1)
  • tips(1)
  • potholes(1)
  • cold weather preparation(1)
  • severe weather(1)
  • auto insurance rates(1)
  • home owners insurance rates(1)
  • insurance agency(1)
  • coverage(1)
  • motorcycle(1)
  • best of clarksville(1)
  • kentucky(1)
  • deductible(1)
  • rental(1)
  • commercial auto insurance(1)
  • natural disasters(1)

View Mobile Version

Connect with us

Facebook LinkedIn

Get In Touch

Contact Us

Fort Campbell Office

2857 Fort Campbell Blvd
Clarksville, TN 37042

Phone: (931) 431-3677

Clarksville Office

111 N Riverside Dr
Clarksville, TN 37040

Phone: (931) 503-0015
© Copyright 2021. All rights reserved.
Powered by Insurance Website Builder