Hazard insurance is the same in Lakewood, Colorado as it is across the United States for all homeowners who have purchased a home. Hazard insurance is in place for only one reason which is to protect the investment that the mortgage company has made by issuing a loan to the homeowner to purchase the home in the first place. Keep in contact with your independent agent to keep your homeowner’s policy in good standing.
Hazard insurance is one of those things included in a homeowner’s policy that is not really thought about until one’s homeowners policy expires. The mortgage company tacks on their own hazard policy to the home and then includes it in payments. This increases the homeowner’s monthly mortgage payment. This has happened to many people, and they have no idea until they get notice of a big hike in their mortgage payment.
Hazard insurance is good for one year, so if the homeowner resumes their regular policy, that will include hazard insurance, they will be paying for it again through the mortgage company. Most mortgage companies will not refund the amount of money should the homeowner pick up their own insurance.
The reason for this is that if a homeowner does not keep their insurance payments up and the policy cancels, the insurance company’s independent agent is obligated to notify the owner’s mortgage company, and they have no other option. This practice is nationwide.
All hazard insurance will cover is the replacement cost of the home if it is destroyed through any number of ways. The mortgage company wants to make sure they are going to get their money back if the home is destroyed. Hazard insurance will cover nothing else. The homeowner will have no liability coverage on the home, and no other coverage such as personal coverage and coverage of personal possessions.
If a homeowner in Lockwood, Colorado has no homeowners insurance they will need to contact an independent agent in Lockwood as soon as possible before the mortgage company adds onto your mortgage this costly insurance to payments. Your independent agent in Lockwood will take care of all your homeowner’s needs.