Are You Required to Carry Homeowners’ Insurance?
Statistics show that on average, Americans will own three homes in their life. The first, bought around age 27 will serve as their starter home. The second home purchased generally serves as the “family’ home where kids grow up and move out. The third home frequently is a downsized or retirement home.
With each of these homes it is likely carrying homeowners’ insurance is a requirement. Here’s why.
If you carry a mortgage loan on your home, it is almost certain your lender will require coverage to protect their interests. Should a home be lost to a fire or other disaster, the odds of the owner continuing payments is low. Homeowners’ insurance assures the lender will get paid back on their loan, even if a major loss would occur.
Another scenario where homeowners’ insurance could be required is if you live in a community managed by an HOA or have a condo association. Associations are charged with working in the best interest of their community and its members. They often require homeowners insurance so the community isn’t left with a damaged, uninsured property.
Of course, those who do not have a mortgage may not be required by a lender to have homeowners’ insurance, but owning a home outright is a significant investment to be left uninsured.
If you are a homeowner or considering the purchase of a home, it is important you perform your due diligence when it comes to homeowners insurance. You do not have to take the recommendations of a realtor or a mortgage broker. You can do your own research and compare your own rates. We, of course can help. Our independent insurance agents can help compare for you.
Now, if you’ve had your home for years, it can be just as important to compare. Rates may have changed to your benefit or your coverage may no longer be sufficient. Our agents again, can assist you in making sure you are getting the most for your money.
Contact us today for a no cost, no-obligation homeowners’ insurance review and quote. You may be required to carry it, but there is no reason to overpay for it.