Can You Score Fire Insurance outside your current home loan? Ms. Lourdes Tanguamos Shares Her Journey

SJ&P | Wealth Advisory
Jul 10
4 min read

Updated: Jul 25

By: King San Josè- Santos, RFP, CFC, CTA, FIFC

Chief Financial Planner | SJ&P Wealth Advisory

In the often confusing world of loans and insurance, many individuals feel overwhelmed by the various requirements and restrictions. This is especially true when seeking fire insurance while already having a loan. Today, we share the inspiring journey of Ms. Lourdes Tanguamos with the help of our SJ&P Chief Consultant, who successfully navigated this complex process. Her story highlights the challenges faced by many and offers practical insights for anyone in a similar situation.

Understanding Fire Insurance

Before diving into Ms. Tanguamos's experiences, it's essential to grasp the core concepts of Fire Insurance.

Fire insurance protects properties from damage caused by fire, providing crucial peace of mind for homeowners and property investors. According to a recent survey, approximately 80% of homeowners reported that having fire insurance was a critical factor in safeguarding their investments.

The Initial Hurdles

When Ms. Lourdes Tanguamos first sought fire insurance while tied to a bank loan, she encountered several obstacles.

Initially, she assumed that obtaining insurance from a provider other than her bank would be nearly impossible. Many banks push their own insurance products, leaving borrowers feeling stuck with limited choices. This common scenario can make individuals feel overwhelmed and hesitant to explore better options available in the market.

Researching Options

Determined to find a better solution, Ms. Tanguamos took the initiative to conduct thorough research.

She began exploring alternative insurance providers specializing in fire coverage. The insurance market has numerous options, and many companies offer policies that do not require alignment with bank stipulations. Online forums and social media groups focused on insurance became essential resources where she found valuable insights and shared experiences from others.

For example, during her research, she discovered our services which provides provide fire insurance at rates 15% to 20% lower than what her bank offered, which significantly influenced her decision-making.

Getting Professional Advice

Recognizing the complexities involved, Ms. Tanguamos decided to consult to SJ&P regarding this matter.

Our Independent service can provide access to options not commonly advertised and offer insights based on current industry trends. We explained that acquiring fire insurance while having an existing bank loan was indeed feasible. This revelation opened new doors for Ms. Tanguamos, allowing her to explore various policy features and pricing structures without the bank's constraints.

Comparing Insurance Offerings

Once armed with information, Ms. Tanguamos set out to compare different insurance policies.

To keep track, she created a detailed spreadsheet that outlined coverage details, premium costs, and additional benefits. Contacting various insurers for quotes was no small task, but Ms. Tanguamos was diligent. She carefully analyzed about five different options, matching features with her coverage needs and budget. By methodically comparing these policies, she ensured she made an informed decision that would best protect her investments.

Understanding the Impact of Pre-existing Loans

One crucial lesson Ms. Tanguamos learned was the influence her existing bank loan had on her insurance options.

We clarified that insurance companies often have specific requirements. Policies might vary based on the outstanding balance of the loan. For instance, certain insurers may mandate maintaining minimum coverage limits related to the mortgage balance. In Ms. Tanguamos's case, she needed to keep her fire insurance coverage at least 20% above the mortgage balance to meet lender requirements.

The Wow Moment

After weeks of diligent research, comparisons, and consultations, Ms. Tanguamos found an insurance policy that not only met her needs but could also be acquired independently of her bank's offerings.

This policy offered comprehensive fire coverage and ensured her mortgage was adequately protected. The feeling of relief and excitement was palpable, as she could finally proceed with peace of mind.

Tips for Others in Similar Situations

Inspired by her experience, Ms. Tanguamos has shared valuable tips for others looking to navigate similar challenges:

Do Your Research: Explore options beyond what your bank offers, as independent providers might have better rates or additional coverage.
Engage Professionals: Seek out knowledgeable brokers who can provide insights and guidance tailored to your situation.
Understand Policy Details: Carefully read the fine print, including exclusions and specific requirements related to your existing loan.
Stay Persistent: The journey may be challenging, but persistence can lead to better options. Do not hesitate to reach out to multiple insurance companies.
Consult with an Independent Insurance Advisor: Our premier service can assist you in finding the ideal solution for your needs.

Click here to schedule a free online consultation regarding our services >

The Importance of Insurance Education

Ms. Tanguamos's journey highlighted the critical need for financial literacy regarding insurance options, especially for those already in debt.

Educating oneself on available insurance products empowers individuals to make informed decisions that support their financial health. Ms. Tanguamos became a passionate advocate for raising awareness about fire and MRI insurance policies, encouraging others to take charge of their financial futures.

Closing Thoughts

Navigating the loan and insurance landscape can feel daunting, but Ms. Lourdes Tanguamos's story shows what is possible when faced with seemingly insurmountable challenges. By researching, consulting professionals, and remaining persistent, individuals can secure fire insurance even while tied to an existing bank loan.

Her journey illustrates that obstacles can appear overwhelming at first, but with knowledge, resilience, and the right guidance, the path to success is attainable.

For those in a similar predicament, remember that you can take control of your financial future. By asking the right questions and seeking the best possible options, you too can follow in Ms. Tanguamos’s footsteps and find peace of mind in your insurance journey.

As you navigate your insurance needs, consider the lessons learned from Ms. Tanguamos’s experience. You may find yourself in a fortunate position, enjoying the benefits of comprehensive coverage tailored specifically to your unique situation.

Understanding your options is the first step toward securing your home and financial future. Happy insuring!