I am about to buy a condo and i am being told that i need an

by jpkman89 » Sat Aug 28, 2010 12:01 am

the purchase price of the condo is around 50k. are these ho6 policies inexpensive?

Total Comments: 1

Posted: Sat Aug 28, 2010 12:44 pm Post Subject:

The cost of an HO6 policy is based on the limits within the policy and the risk to the insurance company.

"Inexpensive" is in the eye of the beholder. $500 to one person is "cheap" and to another is "unaffordable". Most likely the annual premium is going to be "impounded" by your lender, so you'll pay a monthly amount roughly equal to 1/10 the annual premium -- added to your mortgage payment.

Determine your coverage needs with the advice of a local insurance agent, then have them get you competitive quotes from two or three different companies. If the agent only represents one company, then get other quotes on your own using the limits the agent used.

You don't indicate what part of the world you're in, or what limits you need, so the cost could be $100-$1,000. Probably not more than $300-$500. If you're in a flood zone, you'll also be required to carry a National Flood Insurance Program policy in addition to your HO6, and that could be a few hundred dollars per year extra.

Add your comment

Enter the characters shown in the image.
This question is for testing whether or not you are a human visitor and to prevent automated spam submissions.