Owning a home without a quality homeowners insurance policy is like driving your car with bad tires. You may be okay for a while, but eventually, an accident is going to happen that may cost you more than just your financial security. If you own your home outright and have no financial obligations to any lender, you don’t have to insure your home if you don’t want to. However, you have to remember that any type of loss you incur, either through property damage or liability, will be paid for out of your pocket. Before you decide against purchasing a homeowners policy, you need to consider a few important facts.
Lenders Require a Homeowners Insurance Policy to Protect Their Investment
Even though you may not want to purchase a homeowners policy, your lender may require that you have one in place. That’s because in the unfortunate event your house is badly damaged by a hurricane, fire, tornado, or another peril, homeowners insurance protects your lender and you against financial loss. If you still refuse to purchase or maintain one on your own, your lender will purchase one for you and include the cost of the premiums as part of your loan payment. If you allow them to buy your homeowners insurance policy, you will not have any choice in what insurance agency they choose. If you want to control what provider they use, you need to be the one to purchase the policy and keep it in good standing.
Homeowners Policy Provides Long-Term Financial Protection
A homeowners policy offers you long-term financial protection. When you have spent over half of your life paying off your home, you don’t want to take a chance on losing it all with one catastrophic event. As your largest asset, your home is where you spend most of your life and where you keep most of your possessions. This long-term financial protection will give you an opportunity to safeguard yourself from many types of financial loss often caused by unpredictable events. Having a good homeowners policy will reduce your overall risk from natural disasters to liability coverage if someone falls or gets hurt while on your property.
Homeowners Policy Protects Investment in Your Home
A homeowners insurance policy protects your investment in your home and also covers all of your most valuable possessions. After so many years of putting money into your home, it’s important to maintain its value. Taking care of your home and possessions helps them to hold their value for as long as possible. A good homeowners policy ensures that you will be able to repair or replace your home or possessions if something unthinkable happens. The more you invest in your property, the more reason you have to keep your homeowners policy as up-to-date as possible.
Even though you may think a homeowners policy is unnecessary, talk to an insurance professional before you make the final decision to cancel it. At CF&P Insurance Brokers, our insurance professionals can help you identify many of your potential risks when it comes to homeowners insurance. They have many of the answers to questions you may not even think to ask. Call and schedule an appointment with us to find out all of the advantages of having a quality policy in place to protect your home.