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Old 07-19-2012, 10:34 AM
 
108 posts, read 324,221 times
Reputation: 92

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I am looking at buying a house for 80,000 dollars or under. I am trying to find out a ballpark figure of what my home owners insurance might be per month.

I would probably be looking at purchasing HO-3 homeowners Insurance which I believe is the most commonly purchased homeowners insurance today.

I might also be interested in a HO -1 or HO -2 but I am not sure in you can get a HO -1 policy in Arizona and I just do not know very much about the HO- 2 policy of homeowners insurance.

The other question I have is do we pay the homeowners insurance seperately or do they lump that payment on top of our Mortgage payment ?

Is there a way I could just get the homeowners insurance added onto my monthly mortgage payments ?

It would be alot of trouble to have to pay a seperate payment for homeowners insurance every month.

Also with homeowners insurance do I get to pick the company I want for homeowners insurance or does the bank who is giving me the loan for my mortgage tell me who I can and cant have home insurance with ?
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Old 07-19-2012, 10:41 AM
 
Location: Cary, NC
31,592 posts, read 55,307,520 times
Reputation: 30150
Quote:
Originally Posted by Demps View Post
I am looking at buying a house for 80,000 dollars or under. I am trying to find out a ballpark figure of what my home owners insurance might be per month.

I would probably be looking at purchasing HO-3 homeowners Insurance which I believe is the most commonly purchased homeowners insurance today.

I might also be interested in a HO -1 or HO -2 but I am not sure in you can get a HO -1 policy in Arizona and I just do not know very much about the HO- 2 policy of homeowners insurance.

The other question I have is do we pay the homeowners insurance seperately or do they lump that payment on top of our Mortgage payment ?

Is there a way I could just get the homeowners insurance added onto my monthly mortgage payments ?

It would be alot of trouble to have to pay a seperate payment for homeowners insurance every month.

Also with homeowners insurance do I get to pick the company I want for homeowners insurance or does the bank who is giving me the loan for my mortgage tell me who I can and cant have home insurance with ?
Most lenders WANT to have your insurance and taxes added to your monthly payment, i.e., put into "escrow," so they can be sure those items are paid. Generally, people who decline escrow of taxes and insurance will pay a slightly higher interest rate on their loan.

You get to pick the insurance company, and should shop around for rates, but also to ensure you are insured by a financially strong insurer.
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Old 07-19-2012, 01:13 PM
 
41 posts, read 83,526 times
Reputation: 21
We currently own a home in PA that was built in 1870... it was a PAIN getting insurance on it so we had to find a local company and we pay $750 a year (we pretty much get the minimum amount of insurance necessary).

Now we are buying a house in TN built in 1986 and were hoping to have our car and home insurance through the same company. Progressive (where we have our car insurance now) was over $1200/year for home so we kept shopping. We tried Farmer's since my husband likes their tv commercials and they were just over $300/year. Their car insurance was just slightly more than what we pay now so we are switching our car insurance to them too, to get the multi-policy discount My parents have Allstate for all their insurance and they LOVE them. I don't know how much they pay but they are in Florida so probably a lot.

So yes, you do get to choose your own insurance company, the actual price will vary based on your state, and the age/condition/features of your house, but it definitely pays to shop around.
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Old 07-19-2012, 05:02 PM
 
Location: under the beautiful Carolina blue
15,723 posts, read 23,957,202 times
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HO1 and 2 are not for single family homes if I remember correctly. You need to talk to an agent.
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Old 07-19-2012, 06:21 PM
 
2,393 posts, read 4,858,452 times
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1. Talk to an agent. You're a NEW customer. They will be very happy to give you a price.

>The other question I have is do we pay the homeowners insurance seperately or do they lump that payment on top of our Mortgage payment ?

2. You will ONLY be allowed to pay insurance yourself if you make a large downpayment. Same thing with taxes. Welcome to the mysteries of the yearly escrow calculation.
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Old 07-19-2012, 08:25 PM
 
Location: East of Seattle since 1992, originally from SF Bay Area
28,386 posts, read 50,582,032 times
Reputation: 28616
It will depend not only on the company but on the cost of construction/materials in your area. Here for example, it runs
about $180/sf now, and that home would run about $600/year without flood or earthquake coverage. Of course there are no homes for that little so most are well over $1,000/year.
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Old 07-19-2012, 08:43 PM
 
Location: El Dorado Hills, CA
3,670 posts, read 7,974,554 times
Reputation: 3748
While you can pay insurance with your mortgage payment, you will likely be required to pay for the first year up front at the close.
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Old 07-19-2012, 10:12 PM
 
Location: MID ATLANTIC
7,598 posts, read 17,618,792 times
Reputation: 8078
There's actually quite a bit that goes into an insurance quote. Google CLUE Report and you will find:

Quote:
C.L.U.E. Home Seller's Disclosure Reports provide a five-year insurance loss history for a given address, without divulging personal and private information about a property owner. If the report for your property indicates that you have not sustained an insurance loss within the past five years, a buyer can feel comfortable that insurance loss history of the property should not impact the availability or pricing of homeowners insurance. This may give your home an advantage over one where the insurance loss history is not known.
That report captures every 911 call.......even if it's because strange teens were hanging on your front lawn......do you know how many times some people dial 911?
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Old 07-20-2012, 03:26 AM
 
Location: Florida
18,290 posts, read 18,533,242 times
Reputation: 20965
I don''t know how anybody elses experience can help you much since there is such a wide variety of them.
For instance, we pay 4 times as much in Fl as we do in NYS and for less coverage,
Out of 6 mortgages, only one bank required the ins to be escrowed.
On new self-pay policies,you should plan on no less than 40% to 60% up front
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