Generally speaking, the only time you're required to have homeowners insurance is when you have a loan against your home. Banks want their investment protected against accidents, so proof of coverage is a stipulation before you even get the keys.
But what about protecting your investment even after your mortgage is paid off? Getting the best homeowners insurance for your dwelling protects the value of your structure and belongings against damage. It is an invaluable tool in safeguarding your finances.
Banks Know What They're Doing
The risks associated with owning a home without adequate insurance coverage are simply too great. And, make no mistake—the bank owns your home until the mortgage is paid off. This is why every lender insists you maintain a homeowners insurance policy.
What's more, if you're buying a condominium or a co-op, the homeowners association is also going to insist you carry coverage. They'll want to make sure you don't put everyone else's investment at risk.
Bottom line: Both groups expect coverage in the event of an unexpected financial loss.
One Incident Could Render You Homeless
Natural disasters have become more frequent. Storms, fires, and thieves are all capable of decimating the comfort and sanctity of your home. But there are even more risks to consider, including:
- Burst water pipes
- Inadvertent injury to a guest
- Fallen tree branches in a windstorm
- Dog bite liability
A standard homeowners insurance policy will be your financial shield when such tragedies befall you. Without it, you'll find yourself facing bankruptcy in the wake of a major incident. Further, if you're unable to cover the associated losses, you could lose your home altogether.
It's Too Much of a Gamble
Even if you think of yourself as a high roller, do you really want to put the place you live on the line? Every serious gambler knows betting against the house is always fraught with risk. It's a no-brainer when you stop and think about how much your home means to you. CoverHound will help you find the best homeowners' insurance for your budget. Start with a free quote!