What to say to the insurance company? Will companies even insure it? We'd be getting a loan for $40,000 is that all the insurance that would be needed on the house? Oh, I have so many questions... See we want to buy an abandoned house & fix it up but I know the mortgage company is going to most likely make us carry home owners insurance. But I'm not sure how much & what to insure because the house is just the shell & bare studs at this point.
2007-10-14 17:08:53 · 7 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
Your going to want enough insurance to pay off the mortgage and cover any other costs incurred if something were to happen to it. Also, you are going to want to add liability to that if it isn't already there, in case some kid wanders onto the property and hurts themselves while it is being fixed up.
2007-10-14 17:21:39 · answer #1 · answered by christina h 5 · 0⤊ 0⤋
There is insurance you can get for a construction site and I would recommend it because fire, theft, anything can happen. If the loan is 40, the agent will go as high as about 79 thousand, then you can insure contents and add a policy for extra equipment. If you are just barely able to afford the house then go to American Family Ins. and talk to the agent about the lowest home ins. you can be written for. The loan company will also require mortgage insurance of you. There is a national association that sells this for about $400 instead of the thousands the mortgage co. will write it for. It will cost you up front but you will save a percentage of your loan and this money can go into increasing your ins. coverage for your fixer upper. The agent will make a tour of the property and give you the info. you need. Best of luck to you!! I have done this several times so I know it can work out for you too.
2007-10-14 17:18:19 · answer #2 · answered by whrldpz 7 · 0⤊ 0⤋
I work in Australia (I guess the same for most other countries) I would advise you to definately insure the property. Your insurance company will tell you what you need to cover but basically you need to cover the building as is because if there is a fire you will want to replace what is there or compensation for it. Also you need to insure for public liability and any tradespeople (including yourself) who work on the house. And as your rightly point out, our mortgage provider will want you to insure as well. In Australia, mortgage providers can sometimes provide insurance too. Not sure if it is also the case where you are. Good luck and have fun renovating!
2007-10-14 17:19:51 · answer #3 · answered by ozichick1 1 · 0⤊ 0⤋
You would simply need the insurance agent to come out to the site. They will base it on what you paid for it and the condition of the property. Just like any other home insurance. Does not matter if you are living there or not. And yes, you will need insurance. It is required in the state I live in. And for most home loans, it is also a requirement.
2007-10-14 17:13:36 · answer #4 · answered by Anonymous · 0⤊ 1⤋
Insurance companies have guidelines for insuring rental properties and all other kinds of properties, so you'll have to call your agent and find out. They will tell you what kind of coverage you need based on your home and how much it will cost. Where I live, rental properties and vacation homes cost more to insure than a primary residence, but rates vary from state to state.
2007-10-14 17:13:53 · answer #5 · answered by No Shortage 7 · 0⤊ 0⤋
you want to insure your home for the value of the home along with contents. when you take the loan out they will tell you the amount of insurance needed. Never, Never buy over phone or on the Internet. You may get scammed. I have already got my dose of med. from doing this.
2007-10-14 17:16:14 · answer #6 · answered by sunshine 4 · 0⤊ 0⤋
u have to act like u really need it done, or else they wont take u seriously
2007-10-14 17:14:17 · answer #7 · answered by Anonymous · 0⤊ 0⤋