Do Not Forget About Your Property Insurance When Buying A Home!

When you finally reached that goal of saving your 5% down payment you thought, "This is it, I can now say goodbye to my landlord." Then you started to look for a property and found one you fell in love with. Once your offer was accepted, you were scheduled for an exciting day at your lawyers office to transfer the title to your name.

After signing the documents, the lawyer asked for a bank draft that you proudly showed to him. The draft included your 5% down payment, your Property tax, and lawyer’s fees (that you did not know about before but your mom and dad generously covered that bill.) The smile on your face started to disappear when watching  your lawyer’s head shake from side to side and his puzzled look over his glasses said, "This is not enough.”
Then you said, “What? Why not?”
Then your lawyer informs you that your mortgage company is lending you the money with a few conditions and one of the conditions says that you have to have fire property insurance ($500 to $800 bill).  Now you only have 2 hours to find an insurance agency-- and do not forget to call mom and dad to ask for more $$$.

This is not a story that I’ve just made up. This happens more often than it should. Why? --Because of the lack of preparation and information. The lesson here is BE PREPARED.
Remember there are differences between the fire insurance on a house and the insurance on a strata property. Often the strata properties fire insurance in covered in your monthly strata fees.

Do you have a question in this regards? Write me a comment and if I can’t answer your question I will pass it on to my wife Blazena, who has been practicing insurance for the past 12 years.

Tibor