As a soon-to-be-first-time-homeowner, it’s time for you to meet your new best friend, Private Mortgage Insurance! If you have begun to shop around for the house of your dreams but, are concerned that you might not be able to afford your ideal first home, it’s time to look into Private Mortgage Insurance. You will be more successful in securing a loan if you are providing the lender with such an insurance policy that provides protection for the lender if you should default on your loan. Additionally, you will be able to put less of a down payment down on your new home with this type of insurance on your side!
A second type of insurance that is very important for the new homeowner to know about is Massachusetts Home Insurance. When you are buying your first home, there are a lot of things you may not know and there are definitely many things that you will learn. Here are a few things that you may NOT be aware of when it comes to buying your first home and your first homeowner’s policy:
- In Massachusetts, you must pay the premium for your first year of homeowner’s insurance in full.
- Massachusetts Flood Insurance is often times required by a lender and it may, unfortunately, be more expensive that you realize if you are in a flood zone.
- You can often times save money by combining your Massachusetts Auto Insurance Policy/Policies with your Massachusetts Home Insurance Policy. Doing this also makes it easier because all of your polices are with the same agent!
- If you purchase an older home, its important to know the electrical, plumbing and heating systems that run throughout the home and when the last time was that they were updated, if at all.
- If the electrical system is fuses and/or knob & tube wiring, there are often very limited markets that will write your policy.
- When you call for a quote there is a questionnaire that you will go over with your local Massachusetts insurance agent to determine the cost to rebuild the home.
- Homes are NOT insured to market value, purchase price or appraised value.
- Home ARE insured for what it would cost to rebuild the home the way that it sits today, including building material and labor.
- Not included in the rebuild (replacement) cost is the excavation of the site (digging for the foundation).
If you have any additional questions about insuring your new home or ways that you can save money on an existing Massachusetts Homeowners Insurance policy, talk to your local Massachusetts Insurance agent!
07/04/2011 at 2:20 pm Permalink
Great post! As someone currently looking to purchase their first home, this had some great information spelled out in simple terms. Thanks!
08/04/2011 at 9:16 am Permalink
That’s awesome to hear Beth! I’m glad this was helpful! Good luck