Fire insurance is a type of property insurance that covers damage and losses caused by fire. It is typically part of a broader homeowner’s insurance policy and is essential for protecting real estate investments against fire-related incidents.
A form of insurance that provides protection against specific perils such as fires, storms, or other hazards, though it does not cover flood damage. It is often required by mortgage lenders to protect their financial interest in the property.
A homeowner's insurance policy is a type of insurance specifically designed to protect homeowners from losses caused by various common disasters, hazards, theft, and liability. Coverage and costs can vary widely, and certain types of coverage like flood insurance may need to be purchased separately.
Insurance provides protection against loss resulting from hazards such as fire and wind over a specified period. The property owner's risk is assumed by the insurer in return for the payment of a policy premium. It is a crucial element in real estate transactions and property management.
Insurance coverage refers to the total amount and type of insurance a property owner maintains to protect against various risks, including hazards, liability, and other potential losses.
Operating expenses in real estate refer to the costs incurred to operate and maintain a property. These include expenses like property taxes, utilities, hazard insurance, and maintenance, while excluding financing expenses and depreciation.
Premium has multiple meanings in real estate: it refers to the cost of an insurance policy, the value of a mortgage or bond in excess of its face amount, and the amount over market value paid for some exceptional quality or feature.
Prepaids at closing refer to the upfront payments required by a lender to fund an escrow account for future payments of property-related expenses such as hazard insurance, property taxes, and private mortgage insurance (PMI). They might also cover interest accruing from the closing date until the end of the month.
Prepayments in real estate refer to advance payments of expenses like insurance and taxes, which are often funneled into an escrow account.
Reinsurance is the practice where insurance companies transfer portions of their risk portfolios to other parties to reduce the likelihood of paying a large obligation resulting from an individual claim. This process helps insurance companies stay solvent by mitigating the impact of significant or catastrophic losses.
Stachybotrys Chartarum is a type of mold known for growing in areas of a structure exposed to constant moisture and is often claimed to have adverse health effects. It is commonly referred to as 'black mold' or 'toxic mold.'
A tax and insurance escrow account, often required by mortgage lenders, is used to fund annual property tax assessments and hazard insurance premiums for the mortgaged property. This account is funded through monthly contributions by the mortgagor.
