topic Re: Is Hazard Insurance an automatic? in Mortgage Loans

Is Hazard Insurance an automatic?

2b2rich — Fri, 14 Aug 2015 22:15:57 GMT

I keep playing with mortgage calculators and this is an option that usually has a default amount of $150. Is this normally required automatically, or just in situations where the house is sitting in something like a flood zone?

Re: Is Hazard Insurance an automatic?

StartingOver10 — Fri, 14 Aug 2015 22:40:22 GMT

Homeowners insurance is required if you are financing the property.

Flood insurance is entirely separate from Homeowners Insurance and is required if you are in some flood zones and not others.

$150/month may or may not be any where close to reality. You would need to get a quote on the specific property by an insurance agent.

Re: Is Hazard Insurance an automatic?

Anonymous — Fri, 14 Aug 2015 22:46:52 GMT

My Lender dropped the Hazard Insurance after I got HO6. I was very happy. That's saving me $50 monthly.

Re: Is Hazard Insurance an automatic?

2b2rich — Fri, 14 Aug 2015 23:00:43 GMT

Thanks, I understand about the home owners insurance, but this calculator has a separate option for Hazard Insurance and I just wanted to be sure.

Weatherguy I'm not familiar with HO6? I'm guessing it's a level of Home Owners Insurance?

Re: Is Hazard Insurance an automatic?

ezdriver — Sat, 15 Aug 2015 16:15:27 GMT

@Anonymous wrote:
My Lender dropped the Hazard Insurance after I got HO6. I was very happy. That's saving me $50 monthly.

That is a generic term. It includes just about anything that would cause your home to not be habitable. Instead, think in more specific coverage ters such as "homeowners' insurance, flood insurance, etc. All lenders require some minimum coverage in one's homeowner insurance policy...and they sometimes require other coverage if in a fllood zone, earthwake zone, etc. Any number that you use is a guess until you receive an actual quote.

An HO-6 policy is the form used for a condominium insurance policy.

Re: Is Hazard Insurance an automatic?

DallasLoanGuy — Sun, 16 Aug 2015 16:11:50 GMT

i see $80 - $150 per months.... sometimes a wee bit more.

the higher side is in south houston and other areas affected by winds(hurricanes) in the past.

Re: Is Hazard Insurance an automatic?

Anonymous — Sun, 16 Aug 2015 21:04:20 GMT

Every area has different rates for homeowner's insurance. Here in Northern CA, a reasonable estimate is for the annual insurance premium to be 0.25-0.30% of the purchase price. For example, a $250,000 home would have an annual premium of $625-750 per year (or about $52-62 dollars per month). Places like Florida can be more than five times as much.

Re: Is Hazard Insurance an automatic?

Anonymous — Sun, 16 Aug 2015 21:08:05 GMT

@Anonymous wrote:
Every area has different rates for homeowner's insurance. Here in Northern CA, a reasonable estimate is for the annual insurance premium to be 0.25-0.30% of the purchase price. For example, a $250,000 home would have an annual premium of $625-750 per year (or about $52-62 dollars per month). Places like Florida can be more than five times as much.

I'm in Florida and the insurance cost for my $110K condo is $938 which includes hurricane coverage.

Re: Is Hazard Insurance an automatic?

Anonymous — Sun, 16 Aug 2015 21:10:31 GMT

@Anonymous wrote:
@Anonymous wrote:
Every area has different rates for homeowner's insurance. Here in Northern CA, a reasonable estimate is for the annual insurance premium to be 0.25-0.30% of the purchase price. For example, a $250,000 home would have an annual premium of $625-750 per year (or about $52-62 dollars per month). Places like Florida can be more than five times as much.
I'm in Florida and the insurance cost for my $110K condo is $938 which includes hurricane coverage.

So you are at about 0.85%, or 3x as much. I grimace at some of SO10's stories.

Re: Is Hazard Insurance an automatic?

ezdriver — Sun, 16 Aug 2015 21:32:26 GMT

@Anonymous wrote:
@Anonymous wrote:
Every area has different rates for homeowner's insurance. Here in Northern CA, a reasonable estimate is for the annual insurance premium to be 0.25-0.30% of the purchase price. For example, a $250,000 home would have an annual premium of $625-750 per year (or about $52-62 dollars per month). Places like Florida can be more than five times as much.
I'm in Florida and the insurance cost for my $110K condo is $938 which includes hurricane coverage.

Are you insuring for inside damage and contents? The HOA's insurance covers the structure.

Re: Is Hazard Insurance an automatic?

StartingOver10 — Sun, 16 Aug 2015 22:10:42 GMT

@Anonymous wrote:
@Anonymous wrote:
Every area has different rates for homeowner's insurance. Here in Northern CA, a reasonable estimate is for the annual insurance premium to be 0.25-0.30% of the purchase price. For example, a $250,000 home would have an annual premium of $625-750 per year (or about $52-62 dollars per month). Places like Florida can be more than five times as much.
I'm in Florida and the insurance cost for my $110K condo is $938 which includes hurricane coverage.

Wheatherguy, for most condo's the building insurance is included in your condo maintenance fee. Check your condo's budget and Master Insurance policy to be sure. The insurance that is typical for condo's in Florida is the interior contents coverage - and with the rate you are quoting that sounds about right for interior coverage if you are in S Fl.

Re: Is Hazard Insurance an automatic?

Anonymous — Mon, 17 Aug 2015 03:39:51 GMT

I am in NE Florida and my homeowner's insurance is 154 per month, on a 2490 sq ft house.

I would like to shop around for rates but I'm leery because I had a claim in 2012 for a new roof after a big tree fell on my roof.

How much of an impact does a past claim have on rates with a different insurer? I was thinking of trying USAA, happy with auto insurance.

I know they have a database with past claims in it, but cant remember what it is called. Anyone know?

Re: Is Hazard Insurance an automatic?

StartingOver10 — Mon, 17 Aug 2015 11:13:58 GMT

It is called CLUE.

Here is a good explanation page for you: https://www.privacyrights.org/fs/fs26-CLUE.htm

Take a look at this link too https://personalreports.lexisnexis.com/fact_act_disclosure.jsp

Try shopping insurance rates with an insurance broker. They can be excellent for getting the best coverage with the lowest rates and telling you the truth about the insurance co (quality of co and ability to pay claims etc)

Re: Is Hazard Insurance an automatic?

Anonymous — Sun, 09 Jul 2017 13:01:45 GMT

When buying a Florida condo you will have to consider two insurance polycies. Master policy provided by your HOA as part of your monthly maintance payment, and HO6 policy. HO6 policy is only required when you have a mortgage. For more informaiton about condo fiancing and insurance (mod deleted link check your pm)