Home owners insurance is a must have. In fact, you legally have to have home owners insurance in order to buy a house through a bank! Lets take a look at some of the top reasons why you should have home owners insurance.
You Won’t Get A Mortgage:
In order for a bank or a mortgage lender to provide you with a mortgage, they need to make sure their investment is covered. Heaven forbid should something happen to your home like a fire or natural disaster, the mortgage company wants to know their investment in you is safe.
When you go through the actual purchase process, you must provide the bank you are going through a proof of insurance. This is required to complete the closing process.
You Need The Coverage:
With all of the tornadoes, hurricanes and global warming going around these days having coverage is more important than ever. Think of all of the items within your home, your flat screen TV, your jewelry, your computer! All would be covered under your home owners insurance. Not only would your valuables be covered but your most important asset, your home, would be covered as well. most homes these days cost hundreds of thousands of dollars, and that is not something most people can afford to loose. Home owners insurance protects your investment, if something were to happen you would be covered.
How much coverage can you get?
The amount of coverage available through home owners insurance depends on a surveyor. When you reach out to an insurance company, they will review you home, its potential worth and provide you with an estimate of what they will cover your house for. This is an extremely important number because they will only cover what your home is worth. This can be dependent on how many floors your have in your home, how old your home is, what type of heating is utilized and many, many other factors.
The bottom line is that if you plan to purchase a new home you need to make sure you get home insurance. If not, you will most likely not be able to purchase the home unless you are paying straight cash. So make sure you do your research and get yourself a great rate with great coverage.