When you purchase a home, you know there is a lot that goes into keeping your investment safe. You had the home inspected, repaired if needed, and know about the area you home is in. All-in-all, everything looks good and surely you don’t need the extra expense of homeowner’s insurance on top of all the other expenses you will need to pay, right?
Lenders Often Require Homeowner’s Insurance
While you can legally own a home without having homeowner’s insurance, many lenders will require you to have it if you purchase with a mortgage. The reasoning behind this is that your home is as much as an investment to your lender as it is to you. If something happens to your home, lenders want to make sure the damages will be covered so you don’t fall behind on your monthly mortgage payments and be forced to foreclose.
Protection From Natural Disasters
One of the main benefits homeowner’s insurance gives you is peace of mind and protection against natural disasters that may damage your home, like hail and fire. But not all disasters are covered: Events like earthquakes and flooding often need additional insurance on top of your homeowner’s insurance. So if you are in an area that is prone to flooding or earthquakes, you need to look into this type of insurance.
Protection From Liability
Purchasing homeowner’s insurance can also help protect you from liability should someone accidentally injure themselves on your property. That way, if you are sued for damages your property and savings are protected from seizure and you have some money to defend yourself with.
Protection From Personal Property Loss
Homeowner’s insurance also protects assets inside of your home like jewelry and electronics. Taking a thorough inventory of your home will make it much easier for you file a claim in case of loss. Remember to take down the item’s:
- Purchase date
- Estimated value
- Serial number
Taking pictures of valuable items will also go a long way in helping you file a claim with your homeowner’s insurance.
Protection From Loss Of Use
If you are displaced from your home for a period of time thanks to covered damage like fire or hail and the home needs repairs, homeowner’s insurance can help cover temporary relocation and living expenses.
Keep Your Insurance Even After Paying Off Your Mortgage
After you have paid off your mortgage, it is highly recommended that you keep your homeowner’s insurance. In keeping it, you will be continuing to protect your investment throughout the years. There are several different levels of homeowner’s insurance that you can purchase to cover what you need. Simply speak with a qualified agent and your lender to help you get the best insurance for you.