By Andrew O’Brien, Bloomberg BusinessweekA homeowner’s insurance policy is the insurance company that’s insured against losing your home to a foreclosure.
But the term is used in different ways.
In California, for example, your homeowners insurance policy includes coverage for the loss of your home if the value of the property drops below $5,000, as is the case for most homeowners.
This policy does not include coverage for a loss of value if the home is damaged or becomes uninhabitable.
If you lose your home, your policy does cover your family members who live in the home.
The policy also includes an annual limit on your deductible, which can run up to $1 million, and you can have your home appraised for up to 15% of the home value, whichever is higher.
To learn more about homeowner’s policy, read our article:What to know about homeowners insurance.
If your policy covers the loss, but you have an alternative policy that covers the whole of your mortgage, you’re in luck.
In the case of a foreclosure, a lender can take over your home without you getting to make any payments.
You’re required to pay the lender for all of your loans.
If your mortgage doesn’t include any cash advance on it, the lender can seize your home.
In this case, the foreclosure can take up to 30 days.
If the lender doesn’t take your home by the end of that 30 days, the mortgage will automatically be canceled.
You should always contact your insurer if you have a homeowner’s plan and it covers the entire mortgage.
For example, if your policy is for $1.3 million, you should contact your policy provider and ask if you need to apply for additional coverage.
To find out how your policy compares to other policies, check out our list of best mortgage policies to get the most bang for your buck.