Home Design Idea from WorldLand

Although most conventional loans with a 20 percent or more down payment allow you to pay homeowners insurance and taxes on your own, some lenders give you the option of paying them monthly as part of your loan payment (see above). This means less paperwork for you and you don’t have to write big checks as these bills come due.

If you elect to handle the insurance on your own, you don’t want to forget and let the coverage lapse. If you do, your former insurer will notify the mortgage company and the mortgage company will immediately add single vendor coverage, a policy that protects the mortgage company’s interest only and is expensive, costing about double what a homeowners policy costs.

Since you get an annual bill from your insurance company, it’s a good idea to review your coverage and make any changes before you write that renewal check. Many homeowners go for years without giving their policies a thought, then a disaster strikes and they find that they are covered for only a fraction of their loss.

Your insurance agent should be on your speed dial and coverage should be changed or added whenever you: Add a liability, such as a trampoline or swimming pool. Remodel your home and contractors and subcontractors will be working on it, because if one of them gets hurt on your property, you want to be covered.

Turn your home into a rental. Leave your home vacant while trying to sell it. Add to or remodel your home, making changes that increase its value. Note that area’s home values have increased from the previous year. Insurance companies factor in your credit rating when quoting a price.

They’ve found that, statistically, people who have a poor credit rating are more likely to file a claim. Protecting your credit score will yield you big bucks.

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