Hixson, TN and Soddy Daisy, TN Homes for sale – Insurance for Your Home
When buying a home it is important to know a little about insurance. Why? Because real estate transactions involve several different types of insurance. Let's consider them. 
Homeowner's Insurance: This insurance protects your home from unexpected and unforeseen events. Depending on your policy such insurance will cover things like fire, wind damage or water damage from a broken pipe, for instance.
Just about everybody buying Hixson, TN and Soddy Daisy, TN homes for sale uses the term homeowner's insurance. However, just to make it a little more complicated, the settlement statement that you sign at closing calls it hazard insurance. Same thing. Different name.
Often homeowner's (hazard) insurance doesn't cover flood damage. (see below)
Title Insurance: This insurance protects your property's title. After you spend big bucks on the house you don't have to worry about someone drudging up a previous claim against your property to try to take it from you or diminish its value. You title insurance protects you from such things.
Title insurance strikes many buyers as odd since it is a one-time premium. It does not recur monthly. Why not? All other insurance is in place to protect you for something which may happen in the future. So, monthly premiums are necessary. Title insurance protects you from anything in the past. Thus, the one-time premium.
Mortgage Insurance: Mortgage insurance is no fun. Why? You pay the monthly premiums to benefit someone else rather than you. Mortgage insurance protects the lender in case you default.
Who pays mortgage insurance? Borrowers who put less than 20% down on conventional, FHA or THDA loans.
Rural development and VA loans don't require monthly mortgage insurance payments
Flood Insurance: This monthly policy protects homeowners from flood damage. It is available to all homeowners, but people living in flood zones are required to carry it.
If it is optional, and homeowner opts to take out a flood insurance policy, they must wait 30 days for it to go into effect. This keeps people from quickly buying flood insurance when they see bad weather coming, and then quickly canceling their policy after it has past.
Conclusion? When you buy Hixson, TN or Soddy Daisy, TN homes for sale you will have to deal with various types of insurance.
Hopefully, this post will give you an overview of what that involves.
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