Homeowners insurance
A policy covering the home and belongings against damage such as fire or wind, plus liability. Lenders require it before closing. Standard policies do not cover flood, and often not earthquake.
Also called: hazard insurance, home insurance, HO-3
Related terms
A separate policy that covers flood damage, which regular homeowners insurance excludes. Lenders require it for federally backed loans on homes in high-risk flood zones; it is available through the NFIP or private insurers.
An account the loan servicer keeps to pay your property taxes and homeowners insurance, funded by part of each monthly payment. It is reviewed yearly, so the payment can rise or fall with tax and insurance bills.
Short for principal, interest, taxes and insurance, the four parts of a typical monthly mortgage payment. Lenders use PITI, plus any HOA dues or mortgage insurance, to judge whether you can afford the loan.
A limited inspection of the roof, electrical, plumbing, and heating and cooling systems, often required by insurers for older homes, especially in Florida.
An inspection that documents features that help a home resist wind, like roof straps and impact windows. In hurricane-prone states it can lower insurance premiums.