It is very important to keep hazard insurance complete and up to date. Flood insurance is also needed if you are located in a federally designated flood plain area. These are required by lenders before closing. You should make sure your hazard insurance policy contains an inflation rider which automatically increases the coverage as the value of the homes increases. It is important to be sure replacement cost new is provided rather just value. Other insurance available would include a homeowners warranty and insurance from the place of purchase that extends the warranty period for new equipment. Mortgage life insurance pays off the mortgage at the borrower’s death. You may wish to consider all of the preceding insurance as good investments; however, you will have to include the cost for each in your expense.

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