Who Is Best Qualified To Help You With Home Insurance?
You’re purchasing your first home. Congratulations. That is awesome.
But here’s the question- Should you let your mortgage lender decide your homeowners insurance?
Think about it. Who is licensed to sell insurance? Is your mortgage lender licensed to sell insurance? No, they are not. The lender is very concerned with protecting their loan, not your home. All they care about is the loan that they’re giving you and the actual structure of your house. They don’t care about liability that you’re on the hook for it. And they don’t care about your personal property that is inside your home. Those things don’t affect them.
Why You Should Use An Insurance Broker
And the mortgage lender underwriter is not familiar with your area and is not familiar with insurance coverage in general. They don’t know your specific needs. Therefore, they can’t craft an insurance policy specific for you. Many times, I’ve seen lenders that try and get a cheaper insurance policy, a bad insurance policy, just so that their client can qualify for the loan. Don’t do this. What good is purchasing a home if you don’t have the correct insurance to cover it?
So yes, make sure you find a good mortgage lender. They are very important and it’s good to find a good one that can help you find the right home. But leave the insurance to the insurance broker. The insurance broker is licensed and knowledgeable, and can get to know you personally and has a good idea and understanding of your area and your specific needs.
So if you’re a first time homebuyer and you’re looking for insurance guidance, reach out to Safe Street Insurance today. We’re happy to help.