While VA loans come with numerous benefits, they share many of the same requirements as conventional loans. For veterans seeking a VA loan to purchase a home, it's often required to purchase a homeowners insurance policy. Here is the basic info about homeowners insurance requirements:
Is homeowners insurance required for a VA loan?
Just like most conventional mortgages, loans offered through the VA require the buyer to have a homeowners insurance policy. The minimum policy amount can vary depending on where you live and the amount of the loan. However, the policy needs to cover common hazards to your property such as fire, smoke, vandalism, hail and other weather events. If you live in an officially-designated flood zone, you may also need to purchase a separate flood insurance policy.
Military-specific policies and discounts
While the VA doesn't offer homeowners insurance to veterans directly, there are some military-specific policies and discounts available through other providers. You can also opt for a policy through the United Services Automobile Association (USAA) which specializes in providing coverage for military personnel and their families.
If you have another insurance policy through a provider, it's worth inquiring about military or veteran discounts they may offer. Most insurance providers have competitive discounts for clients who purchase multiple policies, so your current provider is an excellent place to begin your search.
Eligibility
There is a wide range of qualifications for homeowners insurance discounts available to veterans, but there are specifics to consider. Some criteria that can affect your eligibility include current deployment, non-deployed active duty, Reserves or National Guard enlistment and status, length of service and the type of discharge you received. You may also qualify for a policy or discount as the spouse or direct family member of a military serviceperson.
About the Author
Richard Powers
Born and raised in Lynn, Massachusetts, Richard has been a successful Real Estate Agent, specializing in the Greater Lynn area for 28 years. He was awarded the prestigious Centurion Award for 19 years in honor of his outstanding number of listings and sales and was the recipient of numerous Diamond Awards for exceptional sales and service.
In his spare time, Rich enjoys golfing, hiking with his dogs and practicing Karate, in which he holds a second-degree black belt. He also enjoys volunteering for various animal rescue groups with his wife of 33 years and is especially dedicated to supporting Faithful Companions, a local non-profit group that helps families in need receive life saving veterinary treatment for their cherished pets.
The next time you need an experienced Real Estate Agent, be sure to give Rich a call. His professionalism and knowledge of the Real Estate Industry are unrivaled.
