against:
Fire and lightning Damage from hail and windstorms Theft and vandalism Smoke damage Falling objects, like tree branches Damage from the weight of ice, snow, or sleet
Frozen plumbing, heating, AC, or other household systems Vehicles (and even aircraft) — not the car itself, which is the object of auto insurance, but damage from vehicles — e.g., if a
car runs into your home. Riots or civil commotions Explosions
Homeowner’s insurance policies also generally include coverage for liability, personal belongings, other structures on your property like carports and fences, and additional living expenses if your home becomes temporarily unlivable. There are advantages of paying homeowner’s insurance up front at closing rather than escrowing the cost within your monthly mortgage. Paying your homeowner’s insurance premium all at once and before closing allows you to exclude that premium from your closing costs, which generally include lender and other fees for which you’re responsible, in addition to your down payment. Closing costs are typically paid in one lump sum. Depending on your mortgage agreement, You may also set up an escrow account to avoid paying large sums for homeownership costs. An escrow is a savings account designed to help you pay your mortgage, property taxes, and even homeowner’s insurance in smaller, periodic installments. Your lender usually deals with payments from your escrow, which means less stressful financial
79
Powered by FlippingBook