Unless you are paying cash for the home, your mortgage lender is going to require the home be insured. The cost to insure your Spring Texas home varies from insurance company to insurance company.
Sometimes the difference between the insurance companies rates are so significant that you wonder just what it is you are missing. In order to get the best coverage for the lowest price you will need to shop around for your homeowners insurance and while you are shopping around remember to ask about discounts including senior citizen and umbrella for combining auto and home policies.
Just make sure when you are comparing insurance company policies that the deductibles and coverage are the same so you have an apples to apples comparison. Read also: 9 things you should know about homeowners insurance.
If your Spring Texas home is located in the 100-year flood zone, your lender will require the home have flood insurance in addition to homeowners insurance. If the home is NOT located in the 100-year flood zone, the decision on whether to insure the home for flood is entirely up to you. Read also: Your Spring Texas dream home is in the 100 Year Flood Zone – Now what?
If you shop for your homeowners insurance during the Option Period and decide the home is going to cost you more to insure than your budget can handle you can terminate the contract because you are still in the Option Period. If you terminate the real estate contract during the Option Period, your Earnest Money will be refunded to you.
One last thing to mention is your first 12 months of Homeowners insurance is paid in advance and will be identified as a prepaid item on your closing / HUD1 statement.
If you have missed one of the previous steps in our first time home buyers series, you can find them through the links below:
Jill worked with us for nearly 11 months to help us find a plot and build a new home from... read moreJill worked with us for nearly 11 months to help us find a plot and build a new home from scratch. She took us through the process which we thought was daunting and at times frustrating. With her excellent local knowledge (including the area, the builder, the market, local school and tax system to name a few) and experience with building a new home (each steps that need to happen and what to look out for), we were able to find a place quickly and go through the building process smoothly. With the ability to grasp our needs and interests fairly quickly, Jill demonstrated strong representation of our interests, including negotiations on our behalf and recommending additional steps which builders would not typically do. Jill had a strong focus on customer service, not only being responsive and answering every questions in detail, but also proactively go extra miles to help us at every step along the way, including alerting us the things we need to do and watch for, helping us out in the design selection process (which very few agents would do) , walking us through the paper works and highlighting issues. It was our pleasure to know Jill and work with her in our new chapter of life. We are very happy with her excellent work and would not hesitate to recommend her to anyone. read less