Can I Buy Home Insurance Online? – Your Guide to Mortgage and Insurance Categories

Can you buy home insurance online? A great question many people are now considering in the digital age when it comes to mortgages, lending, insurance and many other options specific to your real estate needs. 

If you’re looking to purchase or insure a real estate property, there are a lot of categories to try and parse. If you’re a first-time homeowner, this can be less than straightforward if you don’t have a little help along the way to understand the different terms and options. It can also be difficult if you’re looking for mortgages or specialty insurance for what are known as “alternative homes.” These could include things like manufactured home insurance or tiny home insurance, for example. 

Before you go and buy home insurance online, it’s essential to understand what you need. Thankfully, we’re here to help with a handy starter glossary for first-time buyers or for anyone who needs a refresher. 

Mortgages and Loans

Let’s be blunt. Buying a home is expensive. That’s the reason why mortgages and other loans exist. These provide ways for first-time homeowners to afford their homes and make payments in the installments that make the most sense for their finances. 

Purchasing property is always a big decision to come to, no matter how much real estate you already own. This is why it’s important to understand general real estate and mortgage terminology. Some of the most common terms include the following:

• First-Time Buyers Mortgage: Many states have special programs, loans, and grants to help first-time buyers. Make sure to check to see if your state has any of these kinds of programs. An example of an Arizona first-time homebuyer incentive is borrowing up to 5% of the home’s purchase price. 

• Help-To-Buy: If you’ve been looking up mortgage rates online, you might have heard of “Help-To-Buy.” These refer to programs where the government helps pay for part of a mortgage. The most famous Help-To-Buy program is in the United Kingdom. In the US, there are programs such as Federal Housing Administration (FHA) loans.

• Remortgage: As the name suggests, a remortgage is where you take out a new mortgage to replace your old mortgage. If the mortgage is the same as the last one, it’s known as a Renewal. People take remortgages to try and get a lower interest rate. 

• Buy to Let: Most mortgages fall under the category of Residential mortgages. A Buy to Let Mortgage is a unique kind of mortgage designed for properties intended for rental. Trying to rent a property under a residential mortgage can be considered Mortgage Fraud. 

• Equity Release: Exactly how equity release works varies per location. The general idea is that an Equity Release lets you access the equity tied up in your home. Equity releases can be an excellent way to get liquid cash. However, they are always restricted to only those over a certain age (generally 55 or 60) and will come with interest. You have to be careful about this interest piling up.

• Bridging Loan: A Bridging Loan lets you take out a loan against the home you currently own so that you can make a down payment on a new home. This is generally done so you can buy a new home if you’re still looking for a buyer for your current one.

• Secured Loan: A loan is said to be secured if it requires some form of collateral. If your credit rating can’t get you an unsecured loan, a secured loan can be your best bet. (Collateral is an asset that you put up as security for a loan. If you can’t pay it back, you lose your collateral).

Types of Property Insurance

Being covered is never a bad idea. In a perfect world, you’ll never need to worry about things like manufactured home insurance or other kinds of specialty insurance. Unfortunately, the world isn’t a perfect place. That’s why so many people are looking to buy home insurance online these days. However, before buying home insurance online, you must understand what type of insurance you are looking for. Here are some common types of property insurance: 

• Homeowner’s Insurance: For most of us, this is the kind of insurance we’ll mostly deal with. Depending on where you get it, it will generally cover any damage to the property, as well as any assets inside it. You can also get specific insurance for rarer eventualities, such as Flood Insurance and Earthquake Insurance. 

• Renter Insurance: This is a kind of property insurance designed for renters or subletters. It’s designed to help cover belongings, liabilities, and, in some cases, living expenses. In many places, landlords won’t accept tenants without renter’s insurance.

• Landlord Insurance: If you are going to be renting out a property, you will want to look into landlord insurance. This helps cover landlords from financial loss related to their property. It also covers their liability if someone is injured on their property. 

• Mortgage Insurance: This is a type of insurance designed for mortgage lenders. It helps cover them if the borrower (i.e., the homeowner) defaults or otherwise can’t pay back the mortgage. 

• Buildings and Contents Insurance: This kind of property insurance is designed specifically for those using their property as a place of business. It doesn’t only protect the company, but also any equipment you need for your work that you keep there. 

• Speciality Insurance: Some properties might have special considerations when getting insurance. This could be because they have unique risks or are used in a unique manner. Specialty insurance could include Manufactured Home Insurance, Tiny Home Insurance, Vacant Property Insurance, or Multi-Unit Insurance. 

Get Home Insurance Online with CoverTree 

As you can see, there’s quite a lot to chew on when it comes to mortgages and homeowners insurance. Understanding all the different terms can be complex. However, getting a home insurance quote shouldn’t be.

If you’re looking to buy home insurance online, then CoverTree has you covered. We let you get everything done online in just three easy steps. 

Better yet, we’re experts in all kinds of specialty insurance. If you’ve had difficulty getting homeowners insurance, renters insurance, or landlord insurance for your specialty property, then worry no more. From manufactured homes to tiny homes, we have you covered!