Mortgage and Housing

Is Home Insurance Included in Mortgage?

The truth of the matter is that all sorts of damage and losses are covered by home insurance included in mortgage. Many different types of insurance policies exist for homeowners and mortgage lenders, including flood insurance, which is oftentimes required on residential properties.

Flood insurance is available to protect the structure of your home and any attached garages and/or sheds. If a flood should happen, you would need to have flood insurance that would pay to replace all of the contents of your home. Depending on the value of your belongings, this could be a very costly purchase.

Carrying Items with You All the Time

Many times when traveling, we leave our purses, bags, and other personal possessions at home. Unfortunately, these items can never be replaced. However, home insurance will pay for replacement expenses on a variety of different items. Items such as jewelry, appliances, electronics, clothing, and other personal possessions are often covered by home insurance policies.

Furniture covered within the Home

If you have expensive furniture within the home, you may not realize it, but this can be covered by insurance. Home insurance policies will pay for new replacements and repairs of furniture and other items damaged by fire or water. Even broken items can be replaced and covered within your insurance policy.


If you own a dog or cat, they may sometimes be left in your home while you are gone. Unfortunately, not all insurance policies cover pets. Therefore, you should check with your pet insurance company and see if your animal will be covered in the event of an accident. Pet insurance policies usually cover accidents occurring at home and on the animal’s way to a veterinarian. Your vet can even provide you with copies of any necessary X-rays to be able to confirm that your pet is safe.


Most homeowners include coverage for child care in their mortgage contracts. However, it’s important that you check to find out what is covered within your contract. For example, a standard insurance policy usually covers up to two children age six months and older. However, if you have a nanny working for you, she may also be included in your coverage and be covered under your standard insurance policy.

Personal effects

These are oftentimes not covered by standard insurance policies. Therefore, it is important that you find out what is covered by your particular insurance provider. Items such as clothing, jewelry, cameras, lamps, China, appliances, computer equipment, and other items of personal ornaments can be listed under your homeowner’s insurance. Items such as boats and RVs may not be covered under a standard policy because they often have special insurance requirements.

Home repairs and replacements

Certain types of renovations, like ones that involve changing a floor or adding a wall, can be considered repairs or replacements under your mortgage. However, you may not be reimbursed if the contractor does not complete the project as agreed upon. This is why it’s important to read through your contracts very carefully. If there is a provision that says contractors are required to complete the project, you should ask your mortgage company about this requirement before beginning the job. A standard policy will often state that these inspections will be completed before work begins.

Replacement cost

Most insurance policies don’t cover the full cost of a home, including the down payment. While this may not seem like a big deal now, when an unexpected crisis occurs, you could be left without enough cash to live on. Home insurance should always provide at least a partial replacement cost for the damaged property. Therefore, it’s important that you always ask your mortgage company about what will happen if you need to make major repairs due to fire, weather, or another catastrophe.

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