The Pros And Cons Of Flood Insurance

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When buying and financing a house, you will be required to pay homeowners insurance until your loan is paid off. But what many homebuyers don 't always think about prior to putting a contract on a home is how much that homeowners insurance will cost. The cost of your homeowners insurance is usually split up and paid monthly along with your mortgage payment. Therefore, if you didn 't anticipate those extra costs, which could also include your property taxes and perhaps property mortgage insurance (PMI), if you didn 't put 20 percent down, then you might have just priced yourself out of that home because now you can 't afford the monthly payments. It 's extremely important to ask the question "how much is home insurance" before committing to any home.
Once you 've answered the question "how much is home insurance" and have estimated the approximate property taxes and whether or not you will have to pay PMI, then you will know how much house you can afford. This will help you avoid putting a contract on a house only to find out later that with the added fees you can 't afford the
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If you buy a home that is in a flood zone, you will be required to buy and maintain flood insurance on that home. Flood insurance is not generally covered on your homeowners insurance policy and therefore must be purchased separately. In addition, flood insurance can be extremely costly depending on how close that house is to the water. One way to avoid this expense is to check and see if the home you are considering is in a flood zone or a location that will require flood insurance. If it is, and you can 't afford the flood insurance, then it 's best you find another house. Another thing to remember is that depending on the natural disasters and other events that occur each year, the cost of your flood insurance could increase drastically after an influx of natural disasters. Therefore, you will have to make sure your income can cover those increases should they

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