When buying a home for the first time, there are numerous things that you will need to take into consideration. It's imperative at this time to talk with a professional, like Chris Calhoon Real Estate, to make sure that you don't miss any important details. Among important items such as the speculative nature of how much your property and home will increase over time, location, and aesthetic concerns, you should also take into consideration homeowner's insurance. Although purchasing homeowner's insurance is not necessarily a requirement in some states, it is preferable to not carrying it at all. Throughout the course of this brief article, you'll learn of a few important reasons to purchase homeowner's insurance.
Mortgage Lending Requirements
Even if you happen to not live in a state that requires that you own homeowner's insurance by the letter of the law, you will find that a great deal of mortgage lenders require you opt into it, otherwise they will not offer you a loan. This is due to the fact that your investment is also their investment. If the house is somehow damaged, this will decrease their profit margin. Although this is not always the case, lenders tend to want borrowers to take out at least as much insurance value as they have lent you.
Robbery and Theft Protection
Although what is covered by your insurance provider will vary, in most cases, it will protect you from robbery and theft. Any cash, property, or other assets that were taken from your home are covered by most forms of homeowner's insurance. It is imperative, however, that you keep close documentation of all the property that is present in your house. If possible, save receipts from all big-item purchases and keep both a print and digital inventory of property of worth, in the case that your provider demands proof of purchase.
Personal Injury Suit Protection
Homeowner's insurance will oftentimes cover damages that are owed to an individual who files a personal injury suit against you for up to $100,000. This is generally termed "minimum liability coverage." If you wish to opt into a further amount of coverage, this is possible at the discretion of your provider. Insurance can be used to cover the medical bills of the plaintiff, emotional trauma, time lost from work, or, if the case does go to trial, the amount of your court costs.
First-time home buyers and veterans of the property market alike should consider investing in homeowner's insurance for a laundry list of reasons. Hopefully, you have learned a few of them with the help of this guide.Share