During the second quarter of 2019, the Beacon Hill real estate market showed signs of greater stability. While the number of available listings was still below buyers’ expectations, sellers became more motivated in terms of price negotiations. In downtown Boston real estate, sales of Beacon Hill condominium units and Boston high rise condos were brisk thanks to strong demand stimulated by more reasonable interest rates. It’s a good time to go Beacon Hill condo for sale hunting, and if you’re wondering about insurance payments on your future downtown Boston real estate home here’s what you need to know.
When compared to the cost of homeowners insurance for single-family residences (SFRs), Beacon Hill condo policies are lower, particularly in a housing market such as downtown Boston, where SFR properties tend to be priced significantly higher than the national average. Even if you purchase a penthouse in a luxury condominium tower in Midtown, the combined costs of the master policy and coverage for the individual unit should be lower than those for SFR homes across many parts of Boston
If you’re financing the Beacon Hill condo purchase with a mortgage, the bank will make insurance a closing condition. In most cases, this includes the master condo policy plus HO-6 coverage for the unit, a combination that offers reasonable protection in case of various losses but not necessarily for every situation. If you have valuable items or plan on renting your condo, you’ll need to inquire about extra coverage. When your loan-to-value (LTV) ratio is close to 50 percent and the master condo policy provides “all-in” coverage, the mortgage lender may only ask for minimal insurance that could be inadequate for your needs.
Prospective Beacon Hill condo buyers should strongly consider insurance coverage even when their master policies offer some protection in case of damage to the interior. Make sure to ask your insurance agent about the cost of policies that provide coverage for worst-case scenarios, such as a devastating fire, theft, and flooding caused by faulty plumbing.
When you’re looking to buy a Beacon Hill condo, or any downtown Boston real estate can be one of your best choices. Many of the details involved in purchasing property, such as buying insurance, can be a bit overwhelming, so it’s a great idea to seek help from Ford Realty, a trusted real estate firm with agents who will guide you every step of the way. To get into your dream downtown Boston condo, call one of our friendly agents today at 617-595-3712.
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