Insurance: How much does a homeowner need?
Everybody who owns a home should get insurance on their property, and everyone who has a mortgage on their home must get an insurance policy. The lender makes you to carry a policy that covers fire and hazard insurance in order to protect their investment.

To really measure how much you need you need to discuss your situation with a seasoned property insurance professional. Contact me at msearing@mayfairmortgage.com and I would be more then happy to refer you to a reputable, honest property insurance representative.

If you are refinancing your property and the value of the home has increased substantially from the last time you insured it against hazards, it may be advisable an in many cases necessary to increase the coverage amounts and limits on your homeowner's insurance to make sure you can rebuild the property at current market rates for replacement cost.

If you are refinancing, most lenders will require your coverage to be at least in the amount of your new mortgage loan. Ask your mortgage professional to review your mortgage declaration page and consult with your insurance agent.

It is important to understand that homeowners insurance is designed to rebuild the home, replace personal property and protect the homeowners from liability claims. The insurance limit may be different than the market value of your home.

 

 ++