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Do I Need to Purchase Homeowners Insurance?
There are many types of insurance that are optional, but
when buying a home, mortgage lenders usually require you
to purchase a certain amount of homeowners insurance.
While renters often have an option of coverage,
homeowners who still owe a mortgage do not usually have
that option.
Mortgage lenders and banks have a stake in your home,
and homeowners insurance is a way for them to protect
their investment. Should your home be damaged while you
are still paying off your mortgage, the lending company
wants to make sure it is rebuilt after the fire,
tornado, or other disaster.
Also, if you live in an area frequented by certain
disasters like floods and earthquakes, your mortgage
lender may require you to purchase a special homeowners
insurance coverage to make sure you are protected in
these disasters. In the case of co-ops and condominiums,
your board will also most likely require you to at least
purchase homeowners insurance coverage.
However, once your mortgage is paid off you do have the
option of canceling your homeowners insurance policy. No
one will force you to purchase the coverage, but you
will risk losing your investment and not being covered
for all of your possessions.
It may sound like another financial burden when you are
already facing having to pay for a mortgage and mortgage
insurance, but homeowners insurance is a protection you
do not want to go without. Disasters happen. Fires,
floods, tornados, rain, wind, hail – all of these things
can rob you of all that you own. Homeowners insurance
protects your assets if your home is damaged,
vandalized, or robbed. You will be able to replace some
of the things that are lost.
Also, if you have expensive items that your basic
coverage does not provide enough replacement coverage
for, you can also purchase extra insurance for those
specific items. Homeowners insurance can provide you
with peace of mind should anything happen to your home.
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Obtain a quote to see
just how inexpensive it is to protect your assets
through a homeowners insurance policy. Use our "free
quote box" above and get free online
home
insurance quotes today from carriers in your area!
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