Need some help with homeowner's insurance

[TripleAAA]

I'm new to the whole homebuying process. I'm 23, bought a house about 6 months ago that is nearly completed (still being built).

What I do know thus far is that the cost for homeowner's insurance can vary quite a bit depending on location, price of the house, etc.

Let's say for simplicity sake that my homeowner's insurance cost $500 per year. Is that spread out over each month and is it incorporated into my loan usually? I'm pretty sure the answer is yes, but just wanted to make sure.

Anyone have recommendations as to what to get and what NOT to get? FYI, I live in the Central Valley, CA, near Modesto/Stockton and the house is in a brand new development. Any other info needed, just let me know.

Thanks in advance...

 

[NikPreviousAcct]

Call your insurance agent. They'll know better than a forum full of computer nerds. Seriously. Quit wasting time here and call someone who knows wtf they're talking about because they do it for a living. ATOT IS NOT T3H BIBLE OF EVERYTHING.

 

[TripleAAA]

Originally posted by: FFMCobalt
Call your insurance agent. They'll know better than a forum full of computer nerds. Seriously. Quit wasting time here and call someone who knows wtf they're talking about because they do it for a living. ATOT IS NOT T3H BIBLE OF EVERYTHING.

Wow, someone is having a bad day. I'm just looking for some tips and general advice just to get some ideas and brainstorm a bit.

What if I don't really have my own insurance agent. My car insurance is through my parents. Should I go through that guy?

 

[NikPreviousAcct]

Depends. Why don't you call that guy and see? Shop around. ATOT doesn't sell insurance. Talk to someone who does.

 

[EagleKeeper]

Shop around.

Use the local yellow pages.

Rates will vary between companies. Most will provide you a discount if you have auto insurance with them also. After 2-3 years, you can usually will get a preffered customer discount also.

Insurance will need to be paid up front, then the escrow can start to cover the amount needed for the next year.

Some independent agents can run multiple companies by you.

StateFram agent A will give you the same rate as StateFarm agent B.

Mortage companies can provide you with a rip-off insurance, avoid them like the plague.

You should be able to lay your hands on at least 10-12 quotes.

 

[mandala]

Yes, homeowners insurance (also called hazard insurance on some paperwork) is typically incorporated into your mortgage payment (the mortgage company has a vested interest in making sure the home is insured and so they bundle the cost into your montly payment). Some companies that have auto insurance also offer homeowners insurace (and sometimes you can get a break on the price for using them for all your unsurance needs). What company do you have your auto insurance through (I must say I'm a little surprised that you've bought a house, yet your car insurance is with your parents')?

 

[rh71]

The $500/year is due at the beginning of the term, but mine is taken care of by escrow (monthly payments into 3rdparty account). I recently found out escrow doesn't exist everywhere, but it does here in NY.

What to get vs. what not to get... flood insurance was really the only option for us and since we don't live near the ocean or a lake (we're in the middle of an island) we didn't have to get it.

As long as the bank approves of the insurance, you're fine. It needs to cover at least the cost of the loan.

 

[Vic]

Shop around for your own insurance agent. Go through your parents' agents or don't, but find the agent that works best for you.

The insurance will be paid up-front at closing (this is known as a recurring closing cost), plus an additional 2-3 months for your escrow impound account cushion, and then will be incorporated into your monthly mortgage payments.