If I get a home equity line of credit for $30,000 will my homeowner’s insurance increase?

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UPDATED: Oct 1, 2014

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Written By: Jeffrey JohnsonUPDATED: Oct 1, 2014Fact Checked

Homeowner insurance rates are not affected if you obtain a mortgage of any kind. The lender will be added to the insurance policy at the time the loan is completed. If there is a claim for damage to the home after the lender is added, then any claim check will be made payable to you and/or the lending company, or the check may be made payable to the contracting company which will perform any repairs to the home. Be sure you understand how the loan will be handled by the lender and then call your insurance company or agent to add the company to your policy. A copy of the insurance policy will be provided to the lending company and you will receive a revised policy showing the lender as the mortgagee on the policy. Again there will be no charge for this change.

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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Written by Jeffrey Johnson
Insurance Lawyer Jeffrey Johnson

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