THE ANSWER LIBRARY
Insurance without the confusion
Homeowners insurance and mortgage insurance solve different problems. Use these answers to prepare a focused conversation with your insurer or servicer before changing coverage or payments.
21 published answers
Choose insurance around the risks you need to manage
This interview clip connects useful insurance advice with explaining choices. A premium is easier to evaluate when you understand the coverage, exclusions and costs you would still carry yourself.
Read the answerCan I change homeowners insurance when my mortgage has escrow?
You can explore other policies, but coordinate any change with your insurance professional and mortgage servicer. Compare coverage as well as price, keep required coverage in place and confirm who pays each premium. A policy change can affect the escrow account and the next payment calculation.
Read the answerCan I remove FHA mortgage insurance the same way as PMI?
FHA mortgage insurance follows different rules from conventional PMI. Its duration can depend on factors such as when the loan was originated and the original loan terms. Ask the servicer to identify the applicable rule for your actual loan. Do not assume reaching a particular equity percentage automatically ends it.
Read the answerCan rising home value help me remove PMI?
It may under an applicable investor or servicer process, but an online value estimate does not automatically remove PMI. Ask which cancellation path applies, what value evidence is required and whether seasoning, payment history or other conditions matter. Original value based statutory rules and current value based options are not interchangeable.
Read the answerDo I need different insurance if I rent out my home?
Changing a home from your residence to a rental can change its insurance needs and mortgage considerations. Tell your licensed insurance professional and review the loan’s occupancy terms before renting it out. A policy written for your personal residence may not address the new use in the same way.
Read the answerDoes bundling home and auto insurance always save money?
No. Compare the total cost and protection across the policies, not just the discount shown on one of them. Coverage, deductibles and underwriting differ. Ask a licensed insurance professional for a clear comparison and consider what happens if one policy changes or no longer fits your needs.
Read the answerDoes homeowners insurance cover flooding?
Standard homeowners insurance generally does not cover flood damage. Separate flood coverage may be available through the National Flood Insurance Program or a private insurer. Ask a licensed insurance professional about the property, coverage and lender requirements. Being outside a high risk flood area does not mean there is no flood risk.
Read the answerDoes my insurance change if my old home is empty while I sell?
An empty or unoccupied home can change how a policy applies. Tell your licensed insurance professional about the move and expected timeline before leaving the property vacant. Ask what coverage or endorsement is needed and confirm mortgage requirements. Do not assume the old owner occupied policy remains suitable indefinitely.
Read the answerHomeowners insurance or mortgage insurance: which am I paying?
Homeowners insurance covers specified property risks under a policy. Mortgage insurance generally protects the lender if a borrower does not repay the loan. They are different products, and you may pay both. Removing mortgage insurance does not remove the need for required property coverage.
Read the answerHow to Remove PMI From Your Mortgage
For many conventional mortgages covered by federal PMI rules, you can request cancellation when the balance reaches 80 percent of the home’s original value, subject to conditions. Automatic termination follows a different rule. Ask your servicer which rules apply to your loan before relying on an online value estimate or making a large principal payment.
Read the answerIs mortgage protection insurance the same as PMI?
No. PMI generally protects the lender against certain losses if a borrower defaults. Products marketed as mortgage protection may involve life, disability or other coverage with different terms. Review who is insured, who receives benefits and what triggers payment. Do not assume an unsolicited insurance offer is required by your lender.
Read the answerShould I raise my homeowners insurance deductible to lower the payment?
A higher deductible can reduce a premium, but it increases the amount you may need to cover after a covered loss. Compare the actual premium difference with accessible cash and policy terms. Ask your licensed insurance professional and lender about requirements before choosing a deductible solely to reduce escrow.
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