BUYER TIP #5

By
Managing Real Estate Broker with MULAMONT REALTY, LLC MI RE License #6502378551

You Need to Have Insurance!

Buying a HomeI've sold a little bit of real estate in these few years and one of the most consistent questions I've gotten is:  "Do I need to get insurance?".  The answer is Yes.

If you are financing your purchase with a mortgage, the bank or mortgage company will require it.  But that's only part of the reason.  Look at it this way; if you had to borrow money to buy your house, chances are you don't have thousands or hundreds of thousands of dollars lying around in the event the house is totally destroyed.  You may not have a place to live but the debt will still be there.  You can't pay; the insurance company will.

I have a friend whose home caught fire.  The insurance company put his family up for six months while the burnt out home was being rebuilt.  We all complain about paying premiums for "what may happen" but I know he was thankful that his coverage was in place.

As with all products and services on the market, you need to shop around to find the best match for price and coverage. 

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If you need help in Selling your home or you are looking for a home to Buy, visit my website for information to assist you. 

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Rainmaker
579,627
Chris Smith
Re/Max Chay Realty Inc., Brokerage - New Tecumseth, ON
South Simcoe, Caledon, King, Orangeville Real Esta

David, I am going to subscribe to your blog...  and follow the rest of the series.

I would never advise buying mortgage insurance though, I suggest a great alternative is term...

Sep 22, 2010 11:31 AM #1
Rainer
28,124
David L. Montgomery
MULAMONT REALTY, LLC - Pontiac, MI
David L. Montgomery

Thank you!  I'm glad I'm providing value for you. Yeah, as I was writing this I though about the different KINDS of insurance out there.  Maybe I need to talk about each kind with input from a practitioner because I'm no insurance man. 

Sep 22, 2010 11:38 AM #2
Rainmaker
1,505,709
Gary L. Waters Broker Associate, Bucci Realty
Bucci Realty, Inc. - Melbourne, FL
Fifteen Years Experience in Brevard County

I am always insistent that that buyers get an estimated insurance cost early in the process. I don't like surprises and buyers should not be surprised either.

Sep 22, 2010 01:34 PM #3
Rainer
28,124
David L. Montgomery
MULAMONT REALTY, LLC - Pontiac, MI
David L. Montgomery

Especially if the buyer is on a shoestring.  Sometimes the initial premium can take your breath away.  They need to know that as early in the process as they can.

Sep 22, 2010 02:22 PM #4
Rainer
130,917
Jason Channell
Diadem Property Inspections - Serving Southeast Michigan - Troy, MI
The House Sleuth

I had a house fire a few years ago. All I can say is thank God for insurance. It may have a high price tag, but if you ever need it, insurance is worth every penny.

Sep 22, 2010 03:44 PM #5
Rainmaker
460,325
Paul Walker
Equity Fifty Five Realty, LLC - Scott AFB, IL
Scott AFB IL Area Realtor

Good point, thank you for sharing this information.

Sep 23, 2010 03:25 AM #6
Rainer
30,210
Grace Culver
Michigan Homes Network - home advertising and search - Ferndale, MI
Advertising

You are absolutely right, people do complain about the premiums. However, they are very grateful to have the coverage in the time of a crisis.

I always recommend insurance for all our assets.  Many renters don't have renters insurance, but they can also benefit from a policy.  Usually, the prices are worth it's weight in gold for the peace of mine you get.

 

Sep 23, 2010 01:40 PM #7
Rainer
28,124
David L. Montgomery
MULAMONT REALTY, LLC - Pontiac, MI
David L. Montgomery

And I thought I was stumping for the insurance companies.  I got nuttin' on you guys :-)

Sep 25, 2010 10:50 AM #8
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