When it comes to the protection of your home and prized possessions within the home, it is suggested to have homeowner’s insurance for your property.
The insurance helps to protect your home from fire, break-ins, storms, floods, and earthquakes.
Some insurance also helps to cover your priced possessions like jewelry, exclusive artwork, etc. by paying additional coverage also known as a rider.
In case you live in a condominium, your dwelling cover is included in the homeowner association fees. Just like property taxes, your insurance amount is collected by the lender every month through an escrow account, and will pay it to the insurance company when it is due.
The calculation of the insurance amount depends on a lot of factors, like property value, location of the property, available amenities in the area, etc.
Another type of insurance could be included in your monthly mortgage payments is mortgage insurance.
This insurance payment becomes part of your monthly mortgage payment if you have made less than a twenty percent down payment while purchasing the property.