Homeowners Insurance

Homeowners Insurance

Homeowners Insurance covers fire, theft, certain natural disasters and personal liability if someone is injured on your property. It protects the Credit Union against the loss of the property securing your mortgage. You’ll have to prove that you have adequate homeowners coverage as a condition of obtaining a mortgage.

Title Insurance

Several things happen behind the scenes when you buy a house. For example, we will have someone perform a title search to make sure the seller has a legal right to transfer ownership, and to see if there are liens or restrictions on the property. A lawyer, abstractor or employee of the title company does the title search.

Title insurance provides protection against financial loss in case of a defect in the title turns up at some future date. Possible defects include:

• Flawed information in deeds or mortgages (like an incorrect name).
• Liens or claims against the property or property owner (unpaid taxes or bills for water service).
• Claims to ownership from a former owner or spouse.
• Invalid deeds (from a past sale or transfer by a party who didn’t actually own the property).

Private Mortgage Insurance

When you acquire a mortgage with less than a 20% down payment, we may require you to buy mortgage insurance. This coverage helps protect the lender in case you can’t make your payments and default on the loan. Your credit union isn’t the only beneficiary. Mortgage insurance makes it possible for people with small down payments to buy the home of their choice.

Flood Insurance

Flooding is not covered by a standard homeowners insurance policy. To determine if you need flood insurance, ask your insurance professional about the flood history in your area.

If there is a potential for flooding, you will be required to purchase a policy that covers the structure and your personal belongings.

Flood insurance can be purchased from an insurance agent or company under contract with the Federal Insurance Administration (FIA), part of the Federal Emergency Management Agency (FEMA). Flood insurance is only available where the local government has adopted adequate flood plain management regulations under the National Flood Insurance Program (NFIP).

Owners Title Insurance

A basic owner’s title insurance policy protects you against problems with the title to your property that occurred before the date of the policy. This policy is separate from the lender’s title policy. You have to buy an owner’s title insurance policy if you want insurance against any defects in your property title that will affect your interest. Even though you may pay for lender’s title insurance, it does not specifically protect your interest.

Mortgage Life Insurance

This coverage can reduce or pay off your mortgage if you die before the loan is repaid. It generally is decreasing term life coverage. The benefit payable matches your mortgage balance. Consider your entire financial picture, not just your home, in deciding what life insurance protection you need.