By Emily M. SchulzAssociated PressA property insurance policy that covers your home without paying the full cost of a home is a good idea, but it is not without risk.
Home buyers and sellers often choose to buy a policy that offers protection at a low rate, usually a 5-year fixed rate, because the policies are more convenient and easier to understand.
The downside to this strategy is that the policy may not always pay for itself.
If the home buyer is unable to sell the home, and the lender decides to foreclose, the buyer will lose out on the entire mortgage payment.
That’s where the unclaimed-property insurance policy comes in.
The policy protects the seller against a claim for the loss of the home if the lender does not make the necessary payments on the home.
In many cases, the policy does not cover the full amount of the property loss, which can range from $500 to more than $2,000, depending on the length of the loan and the property.
The insurance policy is not always an attractive option for homeowners looking to make a down payment.
If you don’t have the cash to pay down the home mortgage, your unclaimed value could also be a concern, especially if you’re a single parent, who may not be able to pay the entire balance.
If you need help finding a policy to buy, consider one of the following:Some Homeowners Insurance Companies offer policies that are less expensive and less complicated to navigate, but can still be a good option if you have trouble with your lender.
Homeowners Insurance Association (HIA) has a number of policies to choose from, and its policies offer several options that will work for you.HIA offers a broad portfolio of policies, with policies from all the major insurers.
The HIA offers several different types of policies for different income levels, and many are good for homeowners.
If your lender has a policy with a higher guaranteed amount, you can choose a lower rate to pay off the loan.
This option typically offers a lower percentage of your payments than the guaranteed amount.
Hia’s unclaimed rate, based on the mortgage amount, is 4.99%.
You will need to negotiate your rates with your insurer to get a better rate.
Some homeowners insurance policies offer a bonus if you buy the policy before the homeowner has paid the full $1,000 down payment on the property and if you pay all the required monthly payments.
Some of the policies have a $100,000 bonus if your down payment is at least $1.5 million.
Homebuyers and sellers should consider HIA’s policy offerings to find the right policy that will suit their needs.