While no state laws in University Place, WA, mandate homeowners to purchase home insurance, mortgage lenders require borrowers to take out a policy to get a loan. Moreover, homeowners who don’t maintain the policy until the loan is paid off risk being stuck with force-placed home insurance.
What’s Force-Place Home Insurance, and How Can I Avoid It?
Force-placed home insurance is an insurance policy that your lender purchases and requires you to pay for. The lender is not obligated to purchase a policy at the best price or to buy one that meets your specific needs. Moreover, failure to pay for the policy could result in the lender repossessing your home.
Thankfully, it’s not hard to avoid getting stuck with force-placed home insurance. First, you need to make sure your home insurance policy meets the lender’s minimum coverage requirements. Second, you’ll want to make monthly insurance payments on time to avoid loss of coverage. If your lender allows it, you can even open an escrow account with the lender and pay your monthly mortgage bill, insurance bill, and the month’s portion of your property taxes simultaneously.
Meet Your Lender’s Insurance Requirements with Help from MTC Insurance Agency Group
MTC Insurance Agency Group makes it easy for University Place, WA homeowners to understand home insurance policy options and pick coverage that meets lender requirements. If you need a home insurance policy to buy a new house or are looking for a new home insurance policy for your current residence, give us a call to find out more about our policies or to get a price quote.
