The precarious outlook for home insurance, the report said, poses a “systemic risk” to the US housing market as one in 13 homeowners across the United States opt out of insuring their homes.
What do homebuyers need to keep in mind about home insurance?
Spiraling insurance premiums and the growing headache they cause for homebuyers mean they should now be taken into account as early as possible in the purchasing process, according to a leading mortgage industry executive.
Nick Taylor (pictured top), vice president at the Better.com online mortgage lender, told Mortgage Professional that surging home insurance costs meant borrowers could no longer take the process of insuring their home for granted, as might have been the case in years past.
Kris Radermacher from K2K Mortgage in Florida discusses the escalating homeowners insurance costs and property taxes, which are compounding affordability challenges for residents.https://t.co/UbzBuEvcGB
— Mortgage Professional America Magazine (@MPAMagazineUS) June 20, 2024
Sooner is better when it comes to factoring in those considerations, Taylor said. “The advice that we encourage all of our customers to consider is that buying a home is something that’ll always be a necessity, and the difference now [compared with] say, 10 years ago is factoring in what those premiums are going to be should start sooner in your home search process,” he said.
Many customers will only start considering a new home insurance policy when they progress to escrow. Now, though, Taylor said it’s incumbent on buyers – particularly those purchasing for the first time – to pencil it into their plans as early as possible in the homebuying process.
Source: mpamag.com