As you progress through the home buying process, the question of insurance will be raised. Here are the basic types of insurance you should know something about. Be aware that most policies contain standard exclusions and exceptions.
Homeowner's insurance covers fire, theft, certain natural disasters and personal liability if someone is injured on your property. It protects the lender against the loss of the property securing your mortgage. You'll have to prove that you have adequate homeowner's coverage as a condition of obtaining a mortgage.
Several things happen behind the scenes when you buy a house. For example, we will have someone performing a title search to make sure the seller has a legal right to transfer ownership, and to see if there are liens or restrictions on the property. A lawyer, abstractor or employee of the title company does the title search.
Title insurance provides protection against financial loss in case a defect in the title turns up at some future date. Possible defects include:
- Flawed information in deeds or mortgages (like an incorrect name)
- Liens or claims against the property or the property owner (unpaid taxes or bills for water service)
- Claims to ownership from a former owner or spouse
- Invalid deeds (from a past sale or transfer by a party who didn't actually own the property)
Suncoast Schools Federal Credit has a business relationship with Members Title Agency, LLC. Specifically Suncoast Schools Federal Credit Union has a direct or indirect ownership interet in Members Title Agency, LLC. Because of this relationship, this referral may provide Suncoast Schools Federal Credit Union a financial or other benefit.
Set forth below is an estimate of charges for the settlement services listed. You are NOT required to use the listed provider as a condition for the loan. There are frequently other settlement service providers available with similar services. You are free to shop around to determine that you are receiving the best services and the best rate for these services. Estimated Settlement Service charges are $175.00. Title Insurance is based on the Florida promulgated rate which is $5.75 per $1000 up to $100,000 plus $5.00 per $1000 over $100,000 and standard endorsements to the title policy are $35.00 each.
Private Mortgage Insurance - When you acquire a mortgage with less than a 20% down payment, we may require you to buy mortgage insurance. This coverage helps protect the lender in case you can't make your payments and default on the loan. But the lender isn't the only beneficiary. Mortgage insurance makes it possible for people with small down payments to buy the home of their choice.
Flood Insurance - Flooding is not covered by a standard homeowner's insurance policy. To determine if you need flood insurance, a flood zone determination will be performed when you are approved for the loan. If there is a potential for flooding, you will be required to purchase a policy that covers the structure or the maximum allowable by law, whichever is less.
Flood insurance can be purchased from an insurance agent or company under contract with the Federal Insurance Administration (FIA), part of the Federal Emergency Management Agency (FEMA). Flood insurance is only available where the local government has adopted adequate flood plain management regulations under the National Flood Insurance Program (NFIP).
One in four flood damage claims come from low-risk flood areas. Without flood insurance, the cost to recover can be catastrophic.
Know The Facts -
Homeowners policies don't cover flood damage.
Federal assistance may not be available.
Flood Insurance is affordable!
There's a 30-day waiting period on most new Flood policies. Don't wait until it's too late!
Members Insurance Center can answer all your questions now and quote you a premium that will cover your home with Flood Insurance. Call Members Insurance Center at 1-888-238-7511 or click here for a representative to contact you.
This coverage can reduce or pay off your mortgage if you die before the loan is repaid. It generally is decreasing term life coverage. The benefit payable matches your mortgage balance. But consider your entire financial picture, not just your home, in deciding what life insurance protection you need.
