Home insurance, also commonly called hazard insurance or homeowners insurance (often abbreviated in the real estate industry as HOI), is the type of property insurance that covers private homes. All lenders require an HOI policy that meets or exceeds the loan amount at the time of closing. Although most homeowners have a current policy (83% per a recent study), many have not been reviewed annually, thus the cost replacement value has not kept up with the increase in the cost to rebuild the home. As devastating storms have recently torn through the southeastern United States, many homeowners are finding that their current policy does not cover all of their rebuilding costs or that many policies did not cover certain storm damage from natural disasters like flooding or tornados.
Your homework for the coming week is to pull out your HOI policy and call your agent for a review.
If you are interested in using a FHA 203k mortgage in a storm-ravaged area feel free to call me at 1-800-689-6001 or e-mail me at info@203kkc.com to discuss your particular situation.
