Updated: Mar 20, 2020
Are you asking yourself; Should I be concerned about Homeowners Insurance? Then the first question you may be asking yourself whether you are a new or old buyer on why do you need to buy homeowners insurance. The answer is quite simple actually when you think about. Similar to other investment purchases, you are always asked by consumers on whether you would want to purchase a warranty for your product.
The same can be said for your home and it’s valuables. There are numerous different possible outcomes that could be catastrophic towards your home and result in the loss of precious family heirlooms or valuables.
Homeowners Insurance Required?
In theory homeowner’s insurance isn’t similar to car insurance which is required. However; If you have a mortgage, your lender is most likely going to require that you have homeowners insurance. Before funding your mortgage or refinancing, the mortgage company will typically ask you to provide proof that your home is insured. That’s because the lender wants to be sure its financial investment in your home is protected should a casualty such as a fire or certain other risks occur. A House Insurance Inc. agent can help you buy a homeowners insurance policy that fits your needs.
If you don’t have a homeowners insurance policy, the Consumer Financial Protection Bureau states that your lender is allowed to buy insurance and charge you for the cost. While this doesn’t seem like such a bad thing at first, you need to reconsider that your lender may purchase an insurance policy that could be expensive and above your means.
This content is for informational purposes only and may not be applicable to all situations. Coverage subject to terms, conditions, and availability. Policy issuance is subject to qualifications