Most often, these fees must be paid at closing via certified funds and included in the agreed mortgage payments. But after the first year of payments, a homeowner may have some options available in managing the insurance. Keep in mind that the company that is servicing your loan is not required to shop for the most competitive premiums for payment of homeowners insurance, which is included into the loan agreement. And your client may wish to shop and pay separately for a homeowners policy that meets the requirements of the lender agreement, while still saving you some money. Even a few dollars saved monthly and yearly, can add to a significant amount during the life of a 30 year mortgage loan. If your client chooses to do this, he/she will be required to submit proof of coverage to your lender and the company servicing your loan. This is usually done by having the insurance company or the insurance agent submit directly to the lender. It cost nothing for this service. And if you are able to bundle your property insurance to include not only your home, but your automobiles, boats, RV’s, motorcycles, and even your business, you will likely save money. There are several different types of insurance policies that are designed for specific coverage for the protection of your client's property and their homes. If the property is being purchased to become a rental or income unit, it will require a landlord or dwellings policy that will protect the owner against liability claims as well as " loss of rents ". This means that in the event of a significant loss such as a fire, storm or water damage which causes the structure to become inhabitable, the income lost from the tenant is replaced, during the period of repair. Tenants are encouraged to purchase a policy that is similar to homeowners insurance, which is a renters policy. This policy will protect the tenant's property while also protecting the
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