A client asked me the other day why she need hazard insurance? Wasn't the bank paying for the insurance as part of our offer?
I explained that the bank was paying for the home warranty, not the hazard insurance, and that when you purchase a condo, there are actually three types of insurance/warrantys that should be considered.
What's the difference?
Home Warranty
The home warranty covers many items in the home for the first year. For instance, if the garbage disposal were to break, the warranty would cover it, provided it was a covered item after the buyer paid a co-pay, similar to health insurance.
Hazard Insurance
Hazard insurance is often referred to as fire insurance.
In a condominium, the hazard insurance is usually paid for by the condominium association and covers all of the units.
Condominium Insurance
If the hazard insurance is paid by the association, why would I want a condo insurance policy?
The association's insurance only covers the outside walls. Anything inside is the responsibility of the owner. This includes flooring, cabinets, carpet, toilets, etc. Without a condo policy, the owner would be responsible for paying to replace all of these items, never mind the personal property lost.
Condo insurance is usually fairly inexpensive, a few hundred dollars a month, depending upon coverage.
If you don't have it, you should talk to your insurance agent or give me a call for a recommendation.***************************************************************************
About the author: Christine Donovan is a California Residential Real Estate Broker with experience in assisting clients buy and sell residential real estate.
Click for a free list of Orange County foreclosures or a free list of Orange County short sales or e-mail Me!
Are you upside down in your home? Is it worth less than you owe? Are you concerned about making your mortgage payment? Contact me at christine@donovanblatt.com or 714-319-9751 to discuss your options.
Want to buy a home or to list your property for sale in Newport Beach, Costa Mesa, Huntington Beach or Orange County? Contact me at christine@donovanblatt.com or 714-319-9751 to learn about her system which will make your buying and selling experience easier.
Disclaimer: All information in this blog is deemed reliable but is subject to change at any time and is not guaranteed to be accurate nor are there any warantees either express or implied. This blog is not intended to offer any legal, tax or other advice.
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About the author: Christine Donovan is a California Residential Real Estate Broker with experience in assisting clients buy and sell residential real estate.
Are you upside down in your home? Is it worth less than you owe? Are you concerned about making your mortgage payment? For more information see Options to Foreclosures, understanding short sales or contact me at christine@donovanblatt.com to discuss your options.
If you want to buy a home or to list your property for sale, please click Newport Beach homes, Costa Mesa homes, Huntington Beach homes or Orange County homes. Click the link if you are interested in buying a home at a courthouse auction sale.
Contact me at christine@donovanblatt.com or 714-319-9751 to learn about her system which will make your buying and selling experience easier.
Disclaimer: All information in this blog is deemed reliable but is subject to change at any time and is not guaranteed to be accurate nor are there any warantees either express or implied. This blog is not intended to offer any legal, tax or other advice.
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- You may stop doing business with us at any time. You may accept or reject the offer of mortgage assistance we obtain from your lender [or servicer]. If you reject or accept the offer, you do not have to pay us.
- Christine Donovan, DonovanBlatt and Donovan Group are not associated with the government, and our service is not approved by the government or your lender; and
- Even if you accept this offer and use our service, your lender may not agree to change your loan.
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