As a homeowner participating in Steadworth's Home Wealth Share program, you retain full ownership and responsibility for your property. This includes the obligation to pay property taxes and maintain homeowner's insurance.
Property Taxes
Your Responsibility: You are solely responsible for paying all property taxes levied by local governments on your home. These taxes are typically paid annually or semi-annually and are based on the assessed value of your property.
Payment Methods: You can typically pay your property taxes directly to the local tax authority or through your mortgage servicer as part of your monthly payments.
Consequences of Non-Payment: Failure to pay property taxes can result in penalties, fines, and even foreclosure on your home. It's crucial to stay current on your property tax payments to avoid these consequences.
Homeowner's Insurance
Your Responsibility: You are required to maintain homeowner's insurance throughout the term of your Home Wealth Share Agreement. This insurance protects your home and belongings from damage or loss due to events such as fire, theft, or natural disasters.
Coverage Requirements: The specific coverage requirements for homeowner's insurance may vary depending on your location, lender requirements, and the terms of your agreement with Steadworth. It's important to ensure that you have adequate coverage to protect your investment.
Naming Steadworth as an Additional Insured: Steadworth may require you to name them as an additional insured on your homeowner's insurance policy. This provides Steadworth with protection in case of a covered loss that affects their investment in the property.
Consequences of Non-Compliance: Failure to maintain homeowner's insurance can result in a breach of your agreement with Steadworth and may lead to consequences such as Steadworth exercising its option to purchase an ownership interest in the home or pursuing legal action.
Additional Insurance Considerations
Depending on your location and the specific risks associated with your property, you may need to consider additional insurance coverage, such as:
Flood Insurance: If your home is located in a flood zone, you may be required by your lender to obtain flood insurance.
Earthquake Insurance: In areas prone to earthquakes, earthquake insurance can provide additional protection for your property.
It's important to carefully review your Home Wealth Share Agreement and consult with your insurance agent to ensure you have the appropriate coverage to meet your obligations and protect your investment.