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I think he is referring to homeowners insurance. Unlike driving a car, you can legally own a home without homeowners insurance. However, if you finance your hom
by hospes 11y ago
I think he is referring to homeowners insurance. Unlike driving a car, you can legally own a home without homeowners insurance. However, if you finance your home with a mortgage, your lender most likely will require you to have home insurance coverage to protect your home in case of damage caused by unforeseen circumstances (fires or natural disasters).
Last time I checked homeowners insurance prices were something between 0.5-1% of the home value annually. It sounds ridiculous but it does not cover flood, you need separate insurance for that.
Edit: Lender will require this insurance until home is 100% paid off.
- ericd 11y agoThat doesn't sound that ridiculous - that's an expected value of total loss every 100 or 200 years. If you live on a known a flood plain, I also don't think there should be any expectation of less than a very high premium, unless your house is built on stilts. What we probably need is tools that make the total cost of ownership more transparent, though.
- derekp7 11y agoYes, this is regular homeowner's insurance -- it went from 300 a year to 1650 a year within the span of about 5 years. This was just after the 2008 economic meltdown, so I'm sure the insurance companies had to make up for other investment losses. But their excuse, is that my 180K house (with a market value of 160K) has a rebuild cost of over 350K based on their estimation.