Homeowners Insurance on a condo??

Question

Whenever I'm putting numbers into a mortgage calcualtor, it asks you to put in homeowners insurance costs per year.

Right now I'm looking to buy a townhouse that belongs to an HOA like a condo would. (I'm a first time buyer)

Will homeowners insurance HAVE to be integrated into my mortgage payment every month??
Also will I HAVE to get PMI on my mortgage??

Aaron Mazzrillo · Answer

All the condos and townhouses I own have fire insurance included in the HOA payment. As a rental, you only need to add liability which costs me less than $100 / year. However, those HOA expenses eat the heck out of cash flow.

Ty Wesley · Answer

Ok great, just wanted to have close to accurate numbers to put in the calculator when trying to project my monthly payment.

Thanks a lot guys

Wayne Brooks · Answer

It's easy to get a quote.  You need liability, and more than just insuring your belongings? Yes the association insures the structure.

Ty Wesley · Answer

Thank you Wayne

Any estimate on how much I can expect to pay for the homeowners insurance on a 1152 sq. ft., 2 bedroom 1.5 bath, two story w/ a garage?? It is owned by a condominium ownership, but I'm not exactly clear on whether or not they insure the structure. The agent for the property told me that these condos are FHA approved, and that if I were to move in all I would have to insure is my belongings...if that helps you answer my question any.

Wayne Brooks · Answer

[yes, you will need insurance.  The cost will be determined in part by whether it is actually a condominium ownership, where the association insures the structure, or whether it is a true townhouse(fee simple) ownership.  If you put less than 20% down, you will have PMI.