The Mortgage Factors in Insurance

Purchasing a home and getting financing for it is challenging enough without complicating it with inspections, warranties, utilities and insurance.  The process of procuring your insurance coverage should not be difficult, and if done right your lender will get what they need while you assure the protection of your home and family.

The first step is to contact an independent insurance agent to get quotes from.  Why use an independent agent?  Because they can run quotes with multiple companies and offer you the very best quote that they run.  It is like comparative shopping without having to look at all the options yourself!  But before you make that call, make sure you have gathered some information about the home, desired level of coverage (low, medium or high), any special needs (exp: listed jewelry or artwork), and a list of any questions you may want to ask the agent.

Another advantage of working with an independent agent is that the quotes they obtain will have the same variables, so you know you are looking at an apples to apples comparison.  When you get your quotes, you can compare them across all the different coverage types. Don’t just look at the price to make a decision on what policy to go with – coverage is the most important thing to consider when making a decision.

Make sure you ask lots of questions so you fully understand the different coverages available. Being informed means if you decide to lower or go without some coverage, you will fully understand its impact on your home and family if some unforeseen event happens in the future.

Once you have made your decision on what policy you are going with, let your loan officer/mortgage company  know so they can order it for the closing.  The lender needs to order the policy to insure that the proper clause (mortgagee clause) is inserted into the insurance policy per your mortgage terms. Also, the premium amount of the policy and invoice are included in loan approval documents for the closing.

If you are paying cash for the property then you should instruct the insurance agent to bind the policy directly.  Just make sure you give the title company name, contact name and fax number to your agent so the bill and a copy of the policy declaration page can be forwarded to them for the closing.

Because your insurance policy is a binding contract between you, your lender and the insurance company it is important that no others should order your policy for you unless they have a legal power of attorney to represent you in the real estate transaction.  This does NOT include a buyers rep agreement!

The above examples are just a few of the reasons why you should select an Independent Agent like Judge Fite Insurance Agency instead of an agency that only represents one insurance carrier to represent you.  We have over 30 appointments with insurance carriers and a service level to provide you more options, competitive quotes and answers to your questions.

For more information about insurance for you home, investments, vehicles, or business, contact Judge Fite Insurance today at insurance@judgefite.com or 214-446-2572.

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