Insurance World

The coverage usually is supplemental to a Mortgagee’s Title Insurance policy, and the premium is customarily paid by the buyer. As with most other types of insurance, you pay a monthly premium on top of your monthly mortgage payment for this policy. A mortgage insurance policy protects the bank in the event they are forced to repossess your house and sell it at a loss. Private mortgage insurance is an insurance policy designed to protect the lender in case you do not pay back your mortgage loan. A one-year paid receipt for homeowner’s insurance policy for at least the amount of the mortgage is required at the loan closing.

As soon as the sum insured is paid out the mortgage life insurance policy ceases. A mortgage insurance premium is a policy that insures the lender against loss if the homeowner defaults on a mortgage. top Insurance Fees Your policy of homeowner’s or hazard insurance will need to be current at the time the new mortgage closes. Compare the cost of a term life insurance policy to a mortgage insurance policy. It is often less expensive to purchase a term life insurance policy to function as a mortgage protection life insurance policy. The idea behind mortgage protection insurance is straightforward: You pay a premium, which remains the same for the duration of the policy. You have a separate policy for the mortgage and other policies for other life insurance needs. An individual mortgage insurance policy, obtained directly from an insurer, puts you in control of your own coverage.

If a borrower stops paying on a mortgage, the insurance company ensures that the lender will be paid in full. Disposable Income A term referring to all income remaining after all necessary expenses are paid, such as mortgage, car payment, insurance, etc. Private mortgage insurance can help out enormously, especially after you have already paid your closing costs and your down payment. The refunds will involve premiums that were paid for unnecessary mortgage insurance over the last three years, although aides to Mr. It also does not allow you the option of retaining the insurance coverage past the point in time that the mortgage is paid off.

Most mortgage insurance premiums are paid monthly as add-ons to the principal, interest, insurance and tax escrows. Your insurance terminates when your mortgage is paid off or transferred to another party. Private mortgage insurance can be paid on either an annual, monthly or single premium plan. Homeowner’s InsuranceExperts say that even if a mortgage is paid off, homeowner’s insurance is still a good buy. Lenders are paid in advance for how is difficult to 80 of borrowers, who put down on mortgage insurance preamble. Once your loan balance is paid down to less than 75% or 80% of property value, you can cancel your mortgage insurance. The mortgage loan insurance premium may be paid in cash or added to your mortgage.

With mortgage insurance, the borrower pays the premiums, but the lender is the beneficiary. A mortgage insurance apart from providing security against losses to the lender also helps in reducing the down payment. Mortgage insurance coverage on low-down-payment loans protects a lender against losses due to homeowner default, says the company in a news release. With PMI, the borrower pays a premium to a mortgage insurance company selected by the lender. When you have private mortgage insurance you are essentially protecting the lender from any bad deeds on your part. Don’t throw away your money, ask your lender for the details about private mortgage insurance and your mortgage.

You can ask the lender to cancel your private mortgage insurance once you get to the 20-22 percent equity mark. Much of the available jobloss mortgage insurance is available at no cost from the lender as part of a loan package or program. All dealings concerning mortgage insurance are usually handled by the lender. Private mortgage insurance helps to protect the lender if the borrower cannot repay the loan. Private mortgage insurance (PMI) is a form of insurance that protects the lender against loss in the event the borrower defaults on the mortgage. In effect, the mortgage insurance company shares the risk of foreclosure with the lender. Private mortgage insurance is insurance that protects a lender in the event that a homeowner defaults on a loan. http://www.insurance-health-quote.com/mortgage-insurance/

How much do you pay for Car Insurance every year?

Eight hundred dollars a year? One thousand? Two thousand?

Whatever the amount you’re paying now, you can slash that amount by more than 50% by simply following a few simple strategies.

Can you cut your car insurance costs by investing only 30 seconds of your time? No, that can’t be done.

But if you’re willing to spend 30 minutes today, this week, or next, I’ll show you how to save up to $6,000 on your Car Insurance over the next 10 years.

Okay, here we go. Grab your Car Insurance declarations page (the page in your policy that details all the coverage’s you’re paying for) and follow along. Make sure you take some notes. If you don’t have your policy, or can’t find it, call your car insurance company and get one - they’ll send it to you pronto.

STRATEGY 1 - Make sure you’re getting all applicable discounts for your vehicles safety features, such as:

- Front, Side or Head Curtain Air Bags;
- Automatic Seat Belts;
- Anti-Theft Alarms or Tracking;
- ABS or Traction Control….and many more.

Think about the safety features you have….and write them down.

STRATEGY 2 - Review & Change Deductibles For Comp & Collision.

Most Car Insurance Policies have two deductibles - one for “collision” (you hit someone or someone hits you) and one for “Comprehensive” (all other damage or loss).

For both of these, have at least a $500 deductible - preferably a $1000 deductible.

Here’s why - If you are currently paying a $100 - $250 deductible, you’ll save up to 40% per year on your monthly premiums by moving it to $500. That means if you’re currently spending $1,000 a year on insurance, you’re going to get to keep $400 every year. If you jump to a $1,000 deductible, you could keep almost $600 extra a year in your pocket.

I can hear some of you saying, “Wow, a $1,000 deductible. That’s a lot of money.” Yes, it is.

So is paying $1,000 a year with that $100 deductible….versus $400 a year with a $1,000 deductible.

The odds are in your favor - go with the $1,000 deductible.

STRATEGY 3 - Review & Change Property Damage Liability.

Have you ever seen a $100,000 mailbox? Car Insurance Companies must have. Here’s why….

Property damage is not damage done to an automobile but rather “property” like a mailbox or a utility pole. So, why in the world would you need $100,000 dollars of coverage?

In most cases, almost 100% of all property damage claims can be taken care of with only $50,000 of coverage. So take a look at your policy to find out what you’re currently paying for. And if you have little or no Net Worth, drop your coverage even lower - to $25,000 or your States minimum. You can find your States minimum by doing a Google search for “car insurance state minimums.”

Here’s what to look for on your policy - Many will have your liability coverage’s listed like so - 50/100/100 - The first two numbers refer to bodily injury liability coverage. The 1st number is the dollar figure covered per person. The 2nd is the dollar figure per accident.

The 3rd number is the “Property Damage Liability.” That’s what you need to change. What does yours say?

STRATEGY 4 - Review & Change Bodily Injury Liability.

Although Bodily Injury Liability Coverage is a must, almost all of us end-up overpaying for the coverage we need. This type of coverage specifically covers:

- Any and all occupants of an automobile, whether it’s yours or someone else’s;
- Any and all occupants of another vehicle;
- And Pedestrians

Your only goal with this type of coverage is to have just enough protection to protect what is yours….in other words, your assets. And in order to protect your assets, you need to figure out what your Net Worth is - here’s a well known site for calculating your net worth - www.kiplinger.com/personalfinance/tools/networth.html?

A great way to slash your premiums is to have no more in bodily injury liability than what your net worth is. Here’s a common example of the coverage most people have - If your net worth is only $20,000 and you have $100,000 in coverage, you’re throwing money away.

And if you have little, or negative net worth, just get the required State minimums. You’ll need this info to get the lowest car insurance rates. Again, you can get see your state minimums by Googling “car insurance state minimums.”

Here’s what to look for when trying to figure out how much coverage you have now. As I said earlier, most Policies today have your liability coverage’s listed like so - 50/100/100 - The first two numbers (whatever they might be) refer to bodily injury liability coverage. In this example, there is $50,000 in coverage per person and $100,000 per accident.

What does your policy say? Are you paying more than your net worth? If so, change it.

STRATEGY 5 - Review & Change Uninsured/Underinsured Motorist Coverage.

The uninsured/underinsured motorist coverage is a fantastic deal for car insurance companies….and a lousy one for you. This premium alone can increase your auto insurance by a couple hundred dollars a year.

Most folks think that uninsured/underinsured coverage is there to get your car repaired if it is hit by someone without insurance….or someone with lousy insurance.

Wrong.

Any damage done to your car is already covered - by the premium you’re already paying for collision.

First things first….check your policy if your paying for uninsured/underinsured coverage now. If you are, Google “uninsured motorist state requirements” to see if your State requires it.

If it’s not required by your State, cancel it.

If the State you live in does require uninsured/underinsured coverage, make sure you have the absolute minimum required. These minimums are not advertised, change every couple of years and are very difficult to find. So, here’s how you handle this.

Do a Google search for your State Department of Insurance, go to the “Contact Us” page, find a phone number, then call and ask what the minimums are.

Don’t try looking for it. Finding the minimums listed is almost impossible on most State Web Sites - they’ve buried it so deep you’ll never find it. Just call your State Department of Insurance.

I know it’s a bit of a hassle to get the info yourself. Yet relying on the Insurance Companies to give you the correct information isn’t very wise.

Next – Part 2 of “How To Slash Your Car Insurance Costs Up To 54% In 10 Easy Steps”