Hazard Insurance (sales, home owners insurance, mortgage)

[FlyingTexan1]

I'm looking to purchase a home. This will be my first time to ever own a home. I'm trying to make sure I understand the full cost of ownership and one of the things I'm looking at is the cost of insurance.

The house was built in 1950, is about 1250sq ft, and right on the edge of the 100yr and 500yr flood plain. The subdivision is Lazy Brook just north of I-10 off TC Jester. I'm sure there are many variables I don't know about but what could I generally expect to pay?

[ilikepizza]

You can call up a few insurance agents with the address and get a quote. See what the price difference is with different deductibles as well. Don't forget to check if flood insurance is needed. You should get it whether you need it or not, its a lot cheaper if you don't need it. You can type in the address on the flood insurance website to see if its high risk.
You can also ask your realtor to ask the sellers what they pay.

[piyf]

Main thing you're missing is what the home is worth. When you start getting quotes you need to make sure what it covers and what it doesn't. Just because it's cheaper doesn't mean it'll cover less and the same goes with if it's more expensive because it doesn't mean it'll cover more.


Watch out for ones that over insure. That's where the agent makes mo money.

[trbstang]

It is Lazybrook, one word! I grew up right by there in Timbergrove, a nice area.

Do you have car insurance? If so, check with them if they offer homeowners too, since you can get a multi line discount on both. Homeowners has a lot of options, but the main thing is to get enough insurance to rebuild your house if it is totally gone. It may not necessarily be the price you pay for the house, as the land value in that area is well over 50% of the sales price and does not have to be insured, you just have to cover the cost to replace the house. The agent can run their calculations and tell you the price per sqft to rebuild it and that is about how much you should get. You can select your coverage amounts for liability - if someone gets hurt on your property or sues you, and decide on your deductables just like car insurance. Most of them are like 2% of the coverage. Mold coverage, flood insurance, foundation coverage, etc are all available too.

Certainly check several companies, or get with an independent insurance agent who can shop around for the best deal.

Good luck on it!

[predatorprey]

As everyone said shop around, bundle your car and home insurance to get maximum discounts.

Also keep in mind flood insurance is separate to Hazard home insurance. Sounds like you are in the flood zone and insurance will be required by your mortgage provider.

[FlyingTexan1]

I'm getting a little confused. Can you get regular homeowners insurance and add flood coverage or do you have to buy them as two seperate policies?

As stated above the value is in the land however at the same time if the home was damanged I'd want it rebuilt. I have a friend that is a block over, well within the 100yr plain, and he pays about $3,000 a year total for a 1300sq ft home in insurance. Is that what I could expect? I'm going to have to do some shopping but first I guess I need to know what to ask for. The home will be on a FHA loan so they'll require it be covered for flood.

[FlyingTexan1]

I guess I'm a little confused on the difference between flood insurance and hazard insurance.

[swopoe]

Hazard insurance is the same as homeowner's insurance, which you are required to have regardless of whether you are in a flood zone or not.

Flood insurance is insurance against floods.

We are closing on a home next week, and we are not in a flood zone. We have hazard insurance through State Farm, and it is escrowed by our mortgage company. We do not have a flood insurance policy.

[testmo]

nothing will cover damage done by flood waters other than flood insurance. with how often houston floods you always want a separate flood insurance policy. non-flood zones flood just as often as actual flood zones down here.

$3,000 in flood insurance sounds extreme. my home is from that same era, no history of flood claims, no elevation certificate and I pay about $1,100 a year for a much larger home base appraisal $250,000. im in a 100 yr flood plane

if you are in a flood zone your mortgage company will require you prove you have flood insurance before closing. you will need 1. flood insurance 2. homeowners insurance. flood will be handled by FEMA, but can be found and dealt with through whatever homeowners insurance company you choose. bundle together for savings and make sure you talk about everything to your agent. they have the most random discounts for everything. check to see if your job has a network/savings plan for certain companies. for example i get a discount at liberty mutual because of my job

home owners insurance can be expensive. the key is to shop around, and have a realistic deductible for your personal economic situation. for example, 1% deductible the agent will try to put off as standard. so if your home runs into damage you barely have to dip into your pockets to get repairs, but you pay out the rear end for a premium. if you can afford a higher deductible - do it. your insurance company will penalize you for making tiny claims anyway. you dont have much standing to argue the cost of rebuilding as they have a set equation to figure that out - but do look at personal liability coverage and personal property coverage. my agent tried to get me on $300,000 personal liability and $170,000 personal property. bia please, I craigslist

[ToyYot]

You need a flood insurance policy even if you're not in a flood plain.