Home Buying in Miami>Question Details

John, Home Buyer in Miami Beach, FL

If I pay a 100Percent down on a house do I have to pay hazard insurance and will my payment be only property taxes and no mortgage.

Asked by John, Miami Beach, FL Wed Jul 25, 2012

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Hi John,

If you are paying cash for a home you are not required to carry homeowner's or flood insurance and you won't have a mortgage, however, it is in your own best interest to obtain such insurance. Just imagine another hurricane like Wilma or, God forbid, Andrew coming through here. You would want to protect your investment. When you shop for insurance, be sure to get a 4 point inspection. Most insurance companies require it, especially if it's an older home. A 4 point inspection costs about $150 and it checks roof, plumbing, AC and electric and will in most cases lower your insurance, unless the inspector finds something wrong, at which point you may want to reconsider your purchase or re-negotiate the price.
1 vote Thank Flag Link Fri Jul 27, 2012
In terms of "Obligations"; no you don't have to pay anything. Because, the property taxes are not even monthly. They are due by the end of the year.
Now if the House , have an association, the that is an obligation you must fulfill as often as required (sometimes monthly, quaterly or yearly).
The Hazard Insurance, you can also purchase for a whole year in advance, and there are even discounts of doing it so. I presume, if you can pay 100% for a house, you must know the value of insurance, and most importantly, you know the value of paying it up upfront. With this being said, No, you would not have any monthly payments of any kind.
0 votes Thank Flag Link Sun Jan 20, 2013
Can you have your own garage where your cars are away from other cars and people in a Miami Beach condo?
0 votes Thank Flag Link Sat Jan 19, 2013
Hi John,

If you pay all cash for a house, you don't have to have insurance but it is HIGHLY recommended (just 'in case' - kind of like car insurance, etc). You would not have a mortgage but you would have property taxes and any Home Owners Association dues if the property has a Home Owners Association.

Shanna Rogers
SR Realty
0 votes Thank Flag Link Wed Jul 25, 2012
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