Homeowner’s Insurance

Homeowner’s insurance pays for losses and damage to your property if something unexpected happens, like a fire or burglary. There are many different riders available to add to your policy. Consult with your insurance for the best policy for you. If you have a mortgage, the lender will also be listed on the policy. You may also have an escrow account that the annual premium will be paid through.

Title Insurance

There are two types, Lender and Owner’s Title Insurance.

• Lenders title insurance protects the lender against problems with the title to your property-such as someone with a legal claim against the home. This is usually required when you purchase your home.
• Owner’s title insurance provides protection to the homeowner if someone sues or says the have a claim against the home from before the homeowner purchased it. Lender’s may not require you to purchase this but it may be in your best interest to buy it.

Flood Insurance

If your home is located in a federally designated high-risk flood zone or flood plain your lender will require you to purchase flood insurance. Homeowner’s polices do not cover damage from flooding. Lender’s require flood insurance to cover the property structure, though borrowers can also but coverage for personal belongings and furnishings.

Mine Subsidence Insurance

Due to underground mining, Mine Subsidence Insurance provides financial compensation for losses caused by the movement of the earth’s surface that results from the collapse of underground coal and clay mines. This coverage is offered through the Commonwealth of Pennsylvania’s Department of Environmental Protection.

Private Mortgage Insurance (PMI)

PMI is a type of insurance you may be required to pay for if you have a conventional loan. PMI protects the lender when the borrower does not make a down payment of 20 percent of the home’s purchase/market price. If you are refinancing with a conventional loan and you equity is less than 20 percent of the value of your home you may be required to purchase PMI. PMI is required to be removed one you have 20 percent equity in your property.

Credit Insurance

Is a type of insurance policy purchased by a borrower through the lender that can pay off a debit upon death or, makes payments when a borrower is unable to work due to a medical temporary or a permanent disability.