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.

Recommended helpful present and future homeowners links:
Why: Refinance to a fixed rate loan while mortgage rates are still low.
Link:
Why: Because FHA loans are insured by the US Federal Government they have very competitive interest rates and are easier to qualify.
Link:
Why: Know and protect your credit report and score.
Link: See All 3 National Credit Scores & 3 Reports Instantly, Online & Free
Link this QnA Print del.icio.us Digg
Was this Mortgage QnA helpful?
Not at all
  • Currently 3/5 Stars
  • 1
  • 2
  • 3
  • 4
  • 5
 Definitely
Add to this Answer

Mortgage QnA is not a common forum. We have special rules:

  • Post no questions here. To ask a question, click the Ask a Question link
  • We will not publish answers that include any form of advertising
  • Add your answer only if it will contrubute to the quality of this Mortgage QnA and help future readers
If you have trouble reading the code, click on the code itself to generate a new random code. Verification Code Above:
Bookmark and share this QnA:

Common misspellings: mortage and morgage