Florida Home Insurance Lender Requirements [mortgageapproved.blogspot.com]
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If you are in the process of buying a home for the first time in Florida it is important, obtain quotes for homeowners insurance well in advance to avoid delays in closing. Many first time buyers overlook the importance of reviewing multiple quotes to ensure they are binding coverage that will be acceptable to their lender. While every lender has different Florida Home Insurance requirements, each of these requirements are similar. Sit down with your mortgage broker and discuss what your lender expects in terms of insurance. By educating yourself on requirements, you will avoid irritating processing delays.
The main concern of the lender is that you are adequately covering the property with the right dwelling coverage. While you may not be required to cover the home for the sales price of the home because that sales price includes the value of the land the property sits on, you must cover the dwelling sufficiently. The lender wants a guarantee that their investment is protected in the event it is a total loss. Consult a local contractor to discuss the average cost per square foot to rebuild and show this dwelling amount to your lender to verify it is acceptable.
Another area of your Florida Home Insurance policy that your lender is concerned with is your policy deductible. Most lenders will require that you carry a practical deductible that can be met if you experience a loss to your property. While higher deductibles will offer you lower premiums, some lenders will not accept high policy deductibles. Deductibles are available and may range from as little as $ 500 to as much as 2 percent of your Dwelling coverage. Two percent deductibles can be as high as $ 10,000 depending on your dwelling limit. If your lender accepts these deductibles, be sure you can afford to pay for it.
The last area of the policy your lender will be concerned with is the area referred to as additional interests. Additional interests also referred to as loss payees or mortgagees must be listed correctly on the policy. The lender will give you a form explaining their mortgagee clause. This clause must be listed exactly as directed on the policy so that the lender will receive payment in the event of a loss. If even one word is missing, the lender will reject your insurance.
Walking into your escrow closing prepared will make your escrow closing process quick and easy. Receive quotes in advance and compare both policy premiums and conditions. By comparing quotes and coverage options, you will pick the best possible Florida Home Insurance offered by the best possible home insurer. Having comprehensive home insurance will give you peace of mind and will satisfy your mortgage lender's requirements. Find More Florida Home Insurance Lender Requirements Articles
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