When you refinance your home, there are a few ways in which this can affect your home insurance. Typically, a homeowner will choose to refinance when he or she holds certain equity on the home….which is essentially the current value of the home but can increase (or ‘appreciate’) over a certain period of time, in turn….minus the current balance of the mortgage that you still need to pay off. And when you refinance, you’re basically just getting a brand – new mortgage with the goal of reducing the current monthly payments, getting cash out of the home for a bigger, planned purchase, or simply switching between lending companies (as the interest rates or other terms of another may become more appealing, making you an offer you cannot pass up on). You might even decide to change between home insurance providers, opting in for one that better suits your present need.
Also, keep in mind that, when refinancing the home, the mortgage holder, bank or other lending entity will ask that you have your home’s current value newly re – ssessed, just as if the home was currently on sale. And as such, a properly licensed agent will thus appraise the home from every angle to more properly diagnose its actual current valye, regardless of the "stated value" listed when you first signed the mortgage. And naturally, as follows, any and all changes within the home’s value will thus correlate with your home insurance costs; and whatever that final price tag looks like, get at least the MEC or Minimum Essential Coverage if you can afford nothing more. This’ll insure your home. And consider this before refinancing.
Sharp Insurance & Financial Services sells insurance to Ashland, KY customers. They love what they do. Give them a call. Let them help you.