Liz's Havasu Lifestyle Blog: Protecting Your Mortgage and Your Home

Every homeowner has options and responsibilities, which is an important part of protecting your mortgage and your home.  Therefore, I'd like to give some tips and advice about what those options and responsibilities are so your real estate investment will be safe at all times.

Every mortgage lender requires each homeowner to carry homeowners insurance.  Therefore, it is the homeowner's responsibility to maintain adequate homeowner's insurance coverage at all times.

Your homeowner's insurance policy should meet the following requirements:

* Your mortgage company must be listed as the mortgagee on all policies.

* You have to provide at least a minimum protection for fire and extended coverage property insurance for the amount it would cost to rebuild or replace your home at today's cost.

* The insurance company you chose must have a rating of B or higher by the A.M. Best Rating Guide.

* The deductible for your insurance must be at least 5% of the home mortgage, unless a higher maximum deductible is required by state law.  Flood insurance requires a maximum deductible of $5,000.

Policies available to homeowners include: 

* Homeowner's Insurance

* Flood Insurance

* Earthquake Insurance

Each time you make a change to your insurance policy, you must update your mortgage company as soon as possible.  You can even call your mortgage company to discuss possible changes before you make them.

Quick tips to save you money on your homeowner's insurance:

* Combine home and auto insurance policies with the same insurer.

* Maintain a home security system.

* Insure your home, not your land.

* Ensure a smoke-free home.

Following these simple tips and advice will help you save money and feel sure that your real estate investment is in good hands.

Realtor® Liz Miller ~ Lake Havasu City, Arizona Real Estate