If you’ve been asking the question, Is home insurance required for a mortgage in Washington States? Then read the Washington State laws guiding home insurance in Washington States.
In this article, we address common questions among home buyers in Washington. This article deals with the following “property insurance, “Is home insurance required for a mortgage in Washington States?”.
In Washington State, there’s no stated law that demands you to have home insurance when buying a house but where you want to use a mortgage loan to finance the purchase, your lender may likely require you to have a basic home insurance policy in place before closing.
Do I need home insurance to get a mortgage in Washington States
When a mortgage loan is used for the purchase of a home, both the buyer and the lender have something at stake making it the interest of everyone to protect the valuable asset. That’s the reason homeowners insurance is essential for Washington home buyers who use mortgage loans to finance their purchases.
Once you’ve paid off your mortgage loan, you can choose whether or not you want to keep your property insurance policy in place and in some cases, it’s essential to do so. When you take into consideration the low cost of homeowners insurance compared to the value of the property itself, you can see that it’s a smart investment.
If you buy a premium in Washington, the dealer might require you to purchase condo insurance before you can finalize the sale. However Washington State rules and requirements can differ for condominium projects than when compared to a regular detached home so make sure to look into the condo insurance requirements when you’re planning to buy into a condominium in Washington State.
How Much Do These Policies Cost?
The moment you take out a homeowners insurance policy in Washington State, you’ll be able to choose the amount of coverage you want and also the deductible which is the amount to be paid for a claim before the insurance company will cover the rest along with that of the coverage, will determine how much you pay each year in insurance premiums.
There are other factors that can determine your insurance costs as well which includes the home features, the location, and protective devices such as smoke detectors and burglar alarms.
Research from several sources, the average cost of homeowners insurance in Washington State is less than $1,000 per year below the national average. But it can vary.
Are the Premiums Included in the Mortgage Payment?
Homeowners premiums in Washington State are usually escrowed for future payment. And these payments are all stated within the borrower’s monthly mortgage payments. So whenever you make a mortgage payment in a month, you are also paying money toward your homeowners insurance policy. This is usually how it works.
In Washington state, there are many things that go into your monthly mortgage payment which are represented by the acronym PITI. Here’s what those letters represent:
P : the main amount that was borrowed for the mortgage loan
I : Interest rate that are applied to the loan
T : all property taxes incurred by the homeowner
I : All the insurance premiums covering the Washington State homeowners policy
Remember, there is no Washington state law that requires you to have home insurance when buying a house in Washington. But there are chances that you’ll be required to have a homeowners policy in order to use a mortgage loan but can differ due to a number of factors, including all the Deductible amounts. In Washington States, all homeowners insurance premiums are paid with monthly mortgage payments.