is insurence included in a mortgage?

Answer 1

your total mortage payment is usually piti....pricipal, interest, taxes and insurance. you can opt to pay the insurance and taxes on your own, but you do have to pay.

Answer 2

No. Insurance must be bought separately.

Depending on your circumstances, a lender may require "Private Mortgage Insurance" which is something that you pay for but only protects the mortgage company. This is not homeowners insurance.

You also have the choice of having your homeowners insurance payment (which is separate from your house payment) included in the monthly amount you pay your mortgage company. Your mortgage company will then use that extra money and make sure your insurance payments are made on time. This is call impounding the payment, and you can also impound your property taxes.

Impounding can make it simpler to pay those 3 things (mortgage, insurace and taxes) and helps avoid having to plan for large payments like insurance and taxes can be sometimes.

Answer 3

You will contract for insurance separately, but it's very common for the cost of it to be included in your mortgage payment - you pay the bank, into an escrow account, and they pay the insurance bill when it's due - this is normally done with real estate taxes also. Basically, 1/12 of your estimated insurance and property tax payments are added to your mortgage payment and put into escrow, so the money is there to pay them when the bills come in.

Answer 4

If you mean homeowner's insurance, not necessarily. Many lenders offer to collect the insurance and property taxes for you and pay those bills when due. Check with your lender. You must have homeowner's insurance. How you chose to pay it depends on your finances. Many people chose to let the lender collect the money, that way they don't have twice-yearly surprises of property taxes/annual insurance. The bonus of this method is that the money for taxes and insurance earns interest.