As a homeowner, you have many important responsibilities to take care of surrounding the maintenance of your home. It is always wise to acknowledge these responsibilities and take care of them, although they can easily be overlooked. Unfortunately, failing to invest in your home by purchasing a homeowner insurance policy can harm you financially in the future and leave you with more issues than just a slight bump in the road.
Homeowners Insurance May be Required
In many instances, you will find that homeowners insurance is actually required before you are even able to purchase a home. This action is generally required by your lender before they provide you with the funds in order to purchase your home. When you require funding for your home, you will have to follow the rules set up by your lender in order to appeal to that lender. This is because the lender will be wanting to make sure that your home, their investment, has the necessary protection against damage due to risks to your home. While your lender may require a homeowners insurance policy, depending on where you live, they could also require other types of insurance policies as well.
What Does a Homeowners Insurance Policy Protect?
You may assume that a homeowners insurance policy protects only your home. While this makes sense, as it is in the name itself, a homeowners insurance policy actually protects more than just your physical home. Standard policy plans could protect everything from damaged belongings to personal injuries on the property. Listed below are a few things that a standard policy may cover.
Home Coverage
If your home becomes damaged, your policy will have you covered. This typically also includes any structure that is physically attached to your home. This is usually a porch or a garage, which will then be covered as well. In order to determine how much coverage you need, the square footage of your home will be taken into account. That number will then be utilized to determine how much money you would need to repair your home if something were to happen. However, it is important to keep in mind that this number is typically different than the number that you would be able to sell your house for. This is because market values are not synonymous to property coverage costs.
Living Expenses Coverage
If your home becomes damaged, you will likely need a place to stay while your home is being repaired. Depending on your policy, you may have coverage that helps you pay for accommodations and temporary living arrangements. This include helping you to pay for a hotel to stay in while your home is being repaired.
Personal Liability Coverage
There may be a time where you become legally responsible for damaging someone else’s property accidentally. However, these homeowners will likely want finances in order to help them repair the cost of the damage. Your homeowners insurance policy may help you with no only the legal fee aspect of their claims, but also help you cover the costs associated with the damages.
Guest Coverage
Someone who is visiting your home may become accidentally injured. In cases such as these, your homeowners insurance policy could help you to provide you with coverage to assist your guest with medical bills.
How Much Homeowners Insurance Do I Need?
Every situation is unique when it comes to homeowners insurance and you will want to choose a company that recognizes these individual situations. This means that the amount of coverage you need may vary drastically from those around you. This is because it depends on your home, as well as your belongings. When you talk to an insurance agent, they will help you uncover what is important to you and what areas of your home you may need coverage. This could include taking an inventory of everything that belongs to you, as well as considering extras to add on to your policy.
When Should I Get a Homeowners Insurance Policy?
When you start the process of looking at homes to purchase, you should also begin looking for a homeowners insurance policy that will fit your needs. This will allow you the time to secure a few quotes before you settle on the home you would like to purchase. Typically, you will need to have a policy in place for you are able to close on your new home. Your lender will require actual documentation that proves you have an active homeowners insurance policy. Without this, you risk the deal falling through on your new home, as you may not be able to secure the finances.
Will I Still Need Homeowners Insurance After My Mortgage is Paid Off?
Often, it is required that homeowners purchase homeowners insurance before they are allowed by a lender to secure funds for their home. After their mortgage is paid off, that lender will no longer have a legal say in whether or not you hold homeowners insurance. However, owning a home is an investment for you. Damage to this investment without the proper coverage could result in huge financial losses and is a risk that you should not be willing to take, as your home should be regarded as a safe place for you and your family. Homeowners insurance provides you with the means to protect your investment that you have in your home.
Although homeowners have many responsibilities, one responsibility that should never be looked over is having homeowners insurance. Purchasing a policy provides homeowners with many benefits and allows you to successfully secure your financial investment, as well as protect it for the future.
GEC is a team of dedicated professionals who strive to provide their customers, like you, with an unparalleled experience when it comes to purchasing a homeowners insurance policy. That is because we recognize the unique situations that can arise to any homeowner and how these different situations can affect the amount of coverage that is needed from homeowner to homeowner. Our team is ready to answer any questions you may have regarding a homeowners insurance policy. Give us a call today to set up an initial consultation.
