Do You Need Homeowners Insurance?
March 28th, 2022
March 28th, 2022
When you are shopping for a home, you will need to think about budgeting for homeowners insurance. As you do, you may start to wonder whether homeowners insurance is a requirement to own a home.
The short answer is “no, you do not technically need homeowners insurance just to own a home.” But the longer answer is, “yes, you absolutely should get it, and in most cases, you will still have to get it.” Below, we explain why homeowners insurance is not optional, regardless of your financial scenario.
First of all, if you are buying a home with a mortgage, then you doneed homeowners insurance.
It has nothing to do with laws. It has to do with the policies set by lenders.
If you are not taking steps to protect the property, lenders are not going to be comfortable approving you.
Therefore, if you want to be approved for a mortgage so you can move forward with your home purchase, you must get homeowners insurance.
So, even though you can legally own a home without homeowners insurance, you cannot successfully buy a home with a mortgage without tit.
As just stated, there is no law that says that you must be paying for homeowners insurance simply to be the owner of a property.
Hypothetically, if you were to purchase a property outright, paying 100% at the time of purchase, you could get away with skipping homeowners insurance.
Also, hypothetically, after paying off a mortgage, you could cancel your homeowners insurance policy and still be following the law. But in neither of these cases should you think seriously of not paying for homeowners insurance.
The reason is simple: you are investing a lot of money in your home. Plus, if you plan to stay in it for the long term, it will come to take on sentimental value for you as well. You might even be thinking of passing it down to your heirs one day. It could be part of your legacy.
Naturally, you are going to want to protect that investment. A homeowners policy will help generally cover damages in case of:
With additions to your coverage, you also can protect your home and valuables in case of flooding or an earthquake. Exactly what your policy covers will depend on the specific one you choose and the insurer.
One bad day can easily result in tens of thousands of dollars worth of damages to your home. Hopefully, you will never have one of those days. But if you do, having your policy to fall back on will make a huge difference in your life.
If you do not have coverage, there may be a delay before you can afford to make key repairs to your home. In some cases, you might not be able to afford them at all.
But with coverage, you can swiftly repair your home so that damages do not spread and increase. In doing so, you can protect your home’s structural integrity and longevity.
Having homeowners insurance has an additional benefit as well, which is increasing your peace of mind. Instead of worrying about the damage that the next storm could bring, you can focus on enjoying your home.
If you already live in Indiana, you know just how severe and sudden the weather can be in the Midwest. If you are new to the area, you probably are at least familiar with the Midwest’s reputation for intense weather systems. The local climate makes homeowners insurance extra important.
Homeowners insurance policies can vary in terms of what they cover and cost. We recommend reading 3 Things to Know When Purchasing Homeowners’ Insurance and 3 MORE Things to Know When Buying Homeowners’ Insurance before you proceed. Another post that may interest you is In Case of Loss: Do You Have Enough Home Insurance?
At Grandview Lending, we take time to answer your questions about homeowners insurance in-depth. During your consultation, we can provide you with guidance for budgeting and shopping for a policy.
To get started now, please give us a call now at (317) 255-0062. We work with homebuyers and homeowners in Indianapolis and throughout Indiana. Our friendly loan experts look forward to helping you apply for a flexible mortgage.
We provide our clients with exceptional service and integrity which has become our hallmark.