Do You Have To Have Home Insurance In Wenatchee, Washington?

 

Whether you live in Wenatchee or not, we think it's great when we hear from Washington homeowners and learn they do not carry a mortgage on their home. This usually falls in the range of a third of the Washington state population. That is a great situation to put yourself in, and we know it's not easy getting there unless you received the house as a gift from your late great Uncle.

We'll get questions from folks in this situation about whether or not insurance is required at this point. That's a valid question. Why would someone want to pay a premium for insurance on a home if they aren't required to do so? It just so happens, Washington law does not mandate a homeowner as required to carry insurance on their mortgage-free home. 

So, what about those who do carry a mortgage?

Do you have to have home insurance in Wenatchee?

What About Mortgage?

The majority of the Washington population does carry a mortgage and we are required to carry home insurance. You won't sign your name until agreeing to this print on your lending documents.

 

If you don't choose to shop for and assign this insurance, your lender will place it for you. This is known as forced placed insurance and it gets expensive. This is NOT the route we advise for you to go.

 

You are borrowing their money and they get to choose the terms. This protects the investment of the lender, but you get to pay the premium. Seriously, do you want a bank to set the price?

 

Other Debt

Other debts levied against your home may include home equity lines of credit or second liens.

 

Similar to mortgages, these are issued through a lender and your property is the security behind this. Again, since the money belongs to them, they get to decide what you have to do to secure their investment. They want your property insured. You will pay for it. Yup, they will make sure that their investment is protected!

 

Reverse Mortgages

In the not-so-typical category, reverse mortgages are also a lending instrument and fall on the side of controversial conversation. We won't tell you that you should or shouldn't take on this type of instrument.

 

We dedicate ourselves to helping you with the insurance side of the equation, and we aim for getting that right. So, here's how a reverse mortgage works.

 

You let a company purchase your home for a given price and then receive payments as an income stream from that company based on the equity over time.

 

A catch is that the equity has to be unencumbered. This could serve as a way to supplement with a monthly distribution to your retirement income as long as you keep expenses down. It is a finite amount after all.

 

But as in the other two examples, the home insurance payment is on you.

 

Break it down for me

Most Washington folks are going to pay for home insurance and find it inseparable to maintaining a healthy financial identity.

 

What we do at Wenatchee Insurance is help you navigate the situations above. As an independent insurance agent with many carrier option relationships, we can do that.

 

Let's talk today about what the best solution is for you.

 

Topics: home insurance, North Central Washington, Chelan County, Douglas County, Wenatchee Insurance, Allstate, Reverse Mortgage,