A home is not only a roof over your head or a place to make memories. It is also one of the most valuable financial investments that you will ever make. Therefore, it is a good idea to protect it with home insurance. On the other hand, you might be wondering, is homeowners insurance actually required? There are a few important points to keep in mind.
Homeowners Insurance Is Not Required By Law
Homeowners’ insurance is not something that is required by law. Therefore, if you own your home outright, it will be your decision whether you want home insurance. Even if you do not have a loan out on your home, your home is one of your most valuable possessions. Even if you could afford to pay for a total loss to your home, going without home insurance is almost never a justifiable financial risk.
Your Lender Will Probably Require Home Insurance as a Part of Your Mortgage
If you cannot purchase a home with cash, you may have to apply for a mortgage from a bank or credit union. Before they provide you with a loan, they will require evidence of homeowners insurance to protect against the risk of devaluing the property as the result of damage that isn’t covered by insurance. If you do not have home insurance, you will likely not be able to close on the purchase- or refinance. If you already have a mortgage, there is likely a clause in your mortgage that allows the mortgage company to purchase insurance on the home and then pass the cost to you.
Get a Home Insurance Quote Today
In the end, homeowners insurance is not something that is required by law; however, if you have a mortgage, your lender will probably require you to have home insurance before they provide you a loan. You need to find the best home insurance possible at the right price, so get a home insurance quote today! Our agents are standing by to help with your relocation- and any other policies you might need!