Are you ready to move into your new home after purchasing a condo and closing the mortgage loan? Before you do, it's essential to understand what type of insurance is required and what coverage you have. In this article, I'll use Fannie Mae's requirements as a guide to help you comprehend what type of insurance is necessary when buying a foreclosed property in Panama City, Florida. When you purchase a foreclosed property, you'll need to register early and place a deposit. To learn more about future foreclosure sales, check out the legal notice section of the Panama City News Herald or Bay County Bullet.
You can also visit our online auction system at www.bay.realforeclose.com. If something goes wrong in your new home, such as a pipe breaking and flooding the unit or an electrical short circuit causing fire damage, you may be wondering who to call. Should you contact your insurance company or your condo association? Are you covered by your condo association's main insurance policy?Under Fannie Mae's requirements, you must have a HO-6 insurance policy. This type of policy covers personal property and liability for losses that occur in the unit. It also covers any improvements or alterations that you make to the unit.
The HO-6 policy will also cover any assessments that are imposed by the condo association. In addition to the HO-6 policy, Fannie Mae requires that you have hazard insurance coverage for the entire building. This type of policy covers losses due to fire, windstorm, hail, smoke, vandalism, and other hazards. It also covers any damage caused by water from plumbing, heating, air conditioning, or other systems. It's important to note that Fannie Mae requires that both the HO-6 and hazard insurance policies be written in the name of the borrower and lender. The lender must be listed as a loss payee on both policies. When buying a foreclosed property in Panama City, Florida, it's essential to understand what types of insurance are required.
Make sure that you have an HO-6 policy for personal property and liability coverage as well as hazard insurance coverage for the entire building. Both policies must be written in the name of the borrower and lender with the lender listed as a loss payee. As an expert in this field, I recommend that you take the time to research all of your options before making any decisions. Speak with your insurance agent about what type of coverage is best for your situation and make sure that all policies are written in accordance with Fannie Mae's requirements.
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