Why Buy Home Insurance?

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Why Buy Home Insurance?

Why Buy Home Insurance?

People often wonder if they should buy home insurance even after they pay off their mortgage. After all, it's an expensive item and once the mortgage is paid in full there isn't a legal requirement to purchase home insurance. Here are the major reasons to buy home insurance even if it's not mandated by the mortgage company:

  • Preserves and Protects. It might be more important than ever to protect the cost of a paid-in-full property against potential lawsuits or liability claims because there is more to lose. Don't risk losing everything you have worked so hard to preserve just to save a few hundred dollars; instead, preserve and protect it by buying an affordable home insurance product.
  • Less Expensive Than Self-Insuring. There are a few online media gurus proclaiming the advantage of self-insuring a home or other property, but on closer inspection, that option rarely makes sense for anyone other than the wealthiest Americans. Instead, consider increasing the deductible on your policy and then setting aside the difference in a savings account. It allows you to benefit from an ultra-low home insurance premium while still providing comprehensive full coverage in the event of a catastrophic loss.
  • Allows Refinancing & Other Options. If you have ever considered using your home as equity or collateral for a loan, it will be necessary to have insurance in place. Unfortunately, finding home insurance on a home that hasn't been insured for years isn't always easy. By keeping a commercial policy in effect, you assure you are able to obtain a policy and access to financing in the future.

   

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