Do People with Reverse Mortgages Need Homeowners Insurance?

Reverse mortgages can be a great way for seniors with limited funds to continue to live in their homes but not be required to pay for their mortgages any longer. In fact, those who decide to obtain reverse mortgages on their homes will receive money each month instead of paying it, which is why it’s called a reverse mortgage. If you’re considering a reverse mortgage, you are likely to have a number of questions.

One of these questions that you may have is whether you need to continue your homeowners’ insurance policy on your Kingwood, TX home with a reverse mortgage. This is a very valid question, and the answer is yes, you must continue your homeowners’ insurance policy under these circumstances.

Your Responsibilities After Closing on a Reverse Mortgage

While a reverse mortgage can be a great way to reduce the financial burden on senior citizens, there are certain requirements and responsibilities that you must be aware of. Firstly, you must reside in the home that you have a reverse mortgage on. A second requirement is that you must keep up maintenance on the home. The third requirement that you agree to upon signing paperwork for a reverse mortgage is that you will keep your homeowners’ insurance and maintain it throughout the entire period.

If you fail to maintain the insurance, your mortgage company may be forced to obtain its own policy for the property, which will then be billed to you. This is much more costly than keeping your own coverage. 

Consult With Us

If you’re a Kingwood, TX resident and you’re searching for a new insurance company, we at Boss Insurance Agency are here to provide you and all our other customers with top-notch customer service. Give us a call today at Boss Insurance Agency, and we can give you a quote, provide you with information, or assist you with anything else that you may need.