Tax and Insurance Information
Insurance Information
When you purchase or refinance a home, one of the things you have to think about is insurance on the property securing your loan. There are several types of insurance, and various requirements for the amount of coverage, deductibles, and whether or not you have to have an escrow account for these policies. It is important to keep Intercap Lending up to date with your insurance information, especially if you update anything on your policy or policies, change insurance carriers, change your mortgage servicer, or even if you change your name. You may be asked annually to provide Intercap Lending with proof of coverage for required insurance policies.
Let’s review the types of common insurance policies:
- Homeowners Insurance – Also known as hazard or fire insurance, it is insurance that covers your home or residence. Your coverage must be equal to or more than the total amount of all loans on your home or have the full replacement cost guaranteed.
- Flood Insurance – Required for properties located in an area designated by FEMA as a special flood hazard area (SFHA). The coverage must be the lessor of the total amount of all loans on your home, replacement cost guaranteed, up to the maximum allowed by the National Flood Insurance program. You may also be required to maintain an escrow account for flood insurance.
- Wind/Hurricane Insurance – In states that are prone to tornadoes and hurricanes in the Gulf States or Hawaii, a separate wind/hurricane policy or endorsement may be required in addition to your regular hazard insurance policy.
- Homeowner Association (HOA) Insurance – Not to be confused with your monthly or annual dues, this type of insurance is sometimes known as a Master Condo policy, which covers the structure and areas owned in common by all the unit owners. You will need to also get an individual policy to cover the items in your condominium in case of fire or theft.
- Earthquake and Subsidence Insurance – These types of voluntary policies insure your property against damages from earthquakes or landslides.
- Condominium Unit Owner Insurance (H06 or “Walls In”) – Covers the contents of your condo and the interior walls. The Master Condo Policy will not cover these items.
BEWARE OF FORECLOSURE & LOAN SCAMS!
Intercap Lending does not charge fees for loss mitigation or loan modifications to borrowers who are delinquent. Mortgage payments are always payable to Intercap Lending. You should never make your payment out to a third party. Intercap will work with homeowners who become delinquent to ensure all options are reviewed to retain home ownership.
