I am buying a house and they mentioned PMI. What is PMI and do I need it?
PMI or Private Mortgage Insurance is an extra premium you may be required to pay at closing if your down payment is less than 20 percent of the value of the home. For example, usually the lender will forgo requiring you to pay PMI if your house is valued at $100,000 and your down payment is $20,000 or more. Some mortgage companies may require PMI coverage even if your down payment is more than 20 percent. My daughter started a part-time job delivering pizzas to help defray college costs. She uses her own car to make the deliveries. If her car is covered under my policy, does my personal auto policy cover the liability if she is in an accident while on the job? Most personal auto policies will exclude coverage for the vehicle while it is being used for delivery or for business purposes. You may want to check with your agent to see if an endorsement is available to cover this type of activity. Also, the pizza company may have insurance to cover what your auto policy does not cover. I too
