3 Kinds of Insurance That Every Miami Homeowner Should Get
As a homeowner in Miami, you are always concerned about protecting your home. After all, it is, if not your largest investment, certainly an important one. You worry about natural disasters hitting the area where your home is located, tree branches falling on its roof, leaks, and many other adversities. You may also worry that you might lose your job at the worst possible time and be unable to keep up with your mortgage payments. Or maybe when you are facing an issue, your insurance will not come through as you expect. If this happens to you, you need a knowledgeable insurance claim attorney to help you fight for the compensation you deserve. Before anything unexpected happens, be ready with the right protection for your valuable property. Here are three types of insurance that every homeowner in South Florida should have.
Four types of coverage are included in the typical homeowner’s insurance policy. These include dwelling and personal property, medical payments, personal liability, and additional living expenses. This policy is meant to protect a homeowner from loss and damage to their property and the valuables within it.
Please note that flood insurance and earthquake damage are not covered by a homeowner’s insurance policy. It is recommended that if you live in an area where flooding is common, you purchase a separate flood insurance policy. The same applies to earthquake insurance if your area is prone to this natural event.
Buying a mortgage insurance policy means that you will be protected against default. It also means that the lender will give you the loan even when they consider you to be a higher risk. In general, if the down payment you put on the property is smaller than 20 percent, your lender will require this policy. Your policy may allow you to pay the premiums monthly or annually. You may also want to consider disability insurance to have protection should you die or become disabled.
You should ask your insurance company whether it is possible to cancel your mortgage insurance policy once the loan balance has been reduced to a certain amount. Also, ask what specific requirements you would have to meet for this cancellation to take effect.
Lenders require that you have title insurance to protect them against loss when you face claims by others against your new property. Your lawyer may offer this type of insurance as part of their services when they examine the title and provide an opinion. The fee your lawyer will charge you may include the title insurance premium, or you may purchase it directly from a title insurance company or a title agency.
Keep in mind that a title insurance policy is not meant to protect you. If you are worried about others having claims against your new home, you should look into buying an owner’s title insurance policy. This way, should a claim occur, you will be protected against the possibility of facing financial devastation by being uninsured. Ask whether it would be less expensive if you purchase it at the same time as the title insurance that the lender requires.
All these policies can add up to a significant amount of money. It pays to compare rates among various companies, always asking what services and limitations on coverage each policy includes. You may discover that a higher rate will better serve your needs. If your home is new, make sure to include coverage of claims by contractors.