You’re probably concerned that the mortgage lender may not pay your claim in a timely manner. Consider buying homeowner’s insurance from a reputable company that protects your investment.
Some mortgage lenders offer homeowner’s insurance as an optional rider to their mortgage. For questions, Great Lakes State Agency is your insurance expert in Lansing, MI.
Implications of Seeking Insurance through Mortgage Lender
If you have homeowner’s insurance through your mortgage lender, then if you have a loss, you must go through your mortgage lender to get approval for the repairs. This means that they will probably require an independent inspection by an inspector they choose.
They’ll want to see all of your receipts and when you try to pay someone with a check from your homeowner’s insurance policy it will be held up until the mortgage company verifies that the repair has been made properly.
Some lenders may allow you to purchase homeowner’s insurance through your mortgage and others may not. With that said, most likely your ability to refinance your home will not be affected if you have homeowner’s insurance through a mortgage.
Many people are surprised to find out that their mortgage lender may not be the best option for purchasing homeowners insurance. This is because many mortgage lenders require a minimum amount of coverage be carried on the mortgage holder’s insurance.
Most likely, they’ll pay the smaller amount that’s not enough to cover your home in the event of a major disaster. Instead, you may want to consider purchasing insurance directly through your homeowners. This is because the homeowner’s policy will likely cover your home for much more than the mortgage lender’s minimum amount of coverage.
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Homeowner’s insurance is typically purchased through a broker, so it’s recommended that you purchase it from a knowledgeable agent and not your mortgage lender.
Once you have been approved for a mortgage, the lender is obligated to provide you with coverage and will typically provide a standard policy that covers the majority of your home’s value. Visit Great Lakes State Agency to clarify issues in Lansing, MI.