Residential Property Insurance: A Look at Types of Coverages

Homeowners, Lender Placed/MPI, Blanket and REO. What Does This All Mean to Me?

So your home has been damaged by wind, fire, rain or even a plumbing leak?  Upon contacting your mortgage company, you were provided directions for filing a claim with the residential property insurance company. So what type of insurance do you have? Too often, homeowner’s find the coverage, which may or may not be paid from their escrow, does not provide the coverage adequate to repair or replace all of the structural and contents damages. From standard homeowner’s coverage we find several types of other property coverages which may or may not be attached to your monthly mortgage payments. These include homeowner’s, mortgage protection insurance (lender placed coverage), blanket hazard coverage and REO coverage. So, what are the differences?

HOMEOWNER’S COVERAGE
Purchased by the homeowner, and generally escrowed through your mortgage company, a homeowner’s policy is your best investment in protection of your residential property. While homeowner’s policies come with many coverage options, standard policies provide coverage to damages to your dwelling, separate residence structures and contents when the result of a covered peril. A covered peril mayinclude, but not be limited to, wind, rain, hail and snow. Endorsements can be added to the homeowner’s package, at an additional cost to the homeowner, to supplement coverage for mold, animal liability and increase limits of liability. Deductibles vary by dollar amount or may be applied based on a percentage of your policy limits. Without homeowner’s insurance, your dwelling, separate structures and contents are at risk for little to no coverage.