Question:

Do I need hazard insurance if I want to buy a house?

Answer:

Yes, you do. There won't be a lender that will extend you money if you do not show a signed hazard insurance policy prior or at closing the loan for your new house.

Since hazard insurance requirements vary for different areas, you need to consult an insurance agent about what kind of coverage you may need - you should ask about common disasters that happen in the area; whether a comprehensive hazard insurance policy will be enough or you may need additional flood policy, for example.

You may save money on homeowners insurance if you buy a policy with larger deductibles. Higher deductibles allow you to realize direct homeowners insurance premium savings and remove some small repair requirements which may further increase premiums. Additionally, your insurance premiums may be discounted if your property is located near a fire department.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
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