What is Homeowner’s Insurance Used For?

So you have an awesome new townhouse, condo, or home in Chicago? That’s exciting, and we’d love to congratulate you. You may be wondering what the heck townhouse insurance in Chicago is and whether you need it. We’re here to offer you some answers so you can make a decision about whether it’s for you.

What homeowner’s insurance does is pay for damage or losses to your property when something unexpected occurs, like a burglary or a fire. Many homeowner’s insurance options do not cover damage from floods or earthquakes, so if you need it, ask about adding it.

In many cases, the homeowner pays for insurance on a monthly basis through an escrow account. It factors into the monthly mortgage payment. You give payments to a lender who holds on to part of the payment in the escrow account. When the insurance bill comes in, the lender pays it for you out of the account.

If you aren’t sure where your payment is for homeowner’s insurance, or any other insurance for the property, you can find it on page one of your loan estimate under projected payments. That said, it can pay to do some research on your own about how much insurance costs. Sometimes it’s cheaper and easier to shop for insurance and choose the right plan for you and your family.

The lender for your home wants to ensure you have homeowner’s insurance in case anything bad happens. Most of them will not lend you money for a house without having evidence that you have already acquired homeowner’s insurance. If you don’t have the insurance, the lender can buy it for you and charge you for it but they have to give you an advance notice to do so. Keep in mind that if the lender buys the insurance it may not cover you, only the lender. It’s also likely to be more expensive than buying it on your own.

If you are in the market for a new home, Great Northern Insurance Agency, Inc. offers townhouse insurance in Chicago. We offer protection from theft, vandalism, snow and ice damage, windstorms, hail, lightning, and fire. You can also bundle your insurance with your car insurance to save some money in the process. If you’d like to learn more about the possibilities you can reach our office at 773-838-3900 for a completely free quote.

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