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Do I Need Homeowners Insurance If My House Is Paid Off?

When you buy your first home, you’ll also be required to purchase homeowners insurance if it’s financed through a mortgage lender. Homeowners insurance lowers your risk of asset destruction in the event of a natural disaster. It also protects against theft, vandalism, and other mishaps.

Here are a few important reasons to carry home insurance even after paying off your mortgage.

  1. It Will Continue to Protect Your Home

    Disaster can strike any home at the least expected moment. Climate change is leading to some of the worst storms ever recorded. So it’s a good idea to carry homeowners insurance as part of a protection plan against catastrophic events beyond your control.

  2. It Will Also Protect Your Home’s Content

    It’s particularly crucial to insure your home if you own valuable possessions. Your homeowners insurance will pay for damage caused by fire, a tree falling on your home, or other bizarre misfortunes. Make sure you provide your insurance agent an inventory list of your most valuable belongings so that they’re on record in case you file a claim.

  3. It Can Cover the Medical Costs of Injured Guests/ Visitors

    No one expects a guest to become ill or get injured at their house party, but it happens. A person might have too much to drink, lose their balance, and fall. You could be held responsible for their injury, especially if you served them alcohol. The liability segment of your policy will pay for the guest’s medical bills.

  4. It Can Protect You from Lawsuits

    Your homeowners policy covers a range of specific types of lawsuits that might arise, such as doing something that devalues the neighborhood in some way. If you have children or a dog, there’s a chance they may accidentally damage your neighbor’s garden or other property. As long as the damage is unintentional, the policy will likely cover events listed as perils.

  5. It Will Take Care of Temporary Relocation Expenses

    If a disaster damages your home, your policy will pay for temporary housing and living expenses, including hotel and restaurant costs. Even though the odds are low, such a fiasco will disrupt your life. It’s good to be prepared for the worst-case scenarios, which is what home insurance does.

Is Homeowners Insurance Legally Required?

No law requires you to carry homeowners insurance. Nonetheless, paying for even a basic homeowners policy allows you to sleep more comfortably at night, knowing you won’t be wiped out financially by a natural or human-made disaster.

As an independent insurance agency, our experts at CF&P Insurance Brokers can help you customize your homeowners insurance to suit your unique needs. Call us today to learn more!

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