4 Reasons to Have Homeowners Insurance

Buying a home can be a costly, taxing process so when the suggestion of homeowners insurance comes up, some homeowners tend to balk. In a perfect world, of course, it’s nice to have the confidence but you may not want to spend any more than you need to. But that’s the thing: if you’re planning on purchasing a home, you need to have homeowners insurance. It affects not just liability when it comes to any property damage but often even your ability to get a mortgage loan.

Mortgage Lenders Need It

There’s no state requirement that says you must have homeowners insurance, but it is required by most mortgage lenders. After all, financial institutions are taking a chance on you when they offer you a mortgage loan, and they need to protect minimize the risk as much as possible. Varying mortgage loans will have different homeowners insurance coverage requirements, but on the whole, if you need a mortgage loan, you probably need homeowners insurance.

Protection from Home Damage

So maybe you’re a pretty careful resident. You take good care of your home. However, you’re not the only factor from which your home needs protection. Anything from burglars and vandals to storms and natural disasters could cause damage that you didn’t expect to your home. Without homeowners insurance, you’ll probably be paying for all the repairs and replacements on your own. With homeowners insurance, you have a cushion so that an unexpected disaster doesn’t ruin your year.

Protection from Lawsuits

Homeowners insurance doesn’t just protect your home; it also protects you. Imagine a neighbor comes over the day after a snowstorm, and slips on ice on the driveway, hurting themselves. Or imagine the windows break and someone is cut by glass. You like to think you take precautions to make sure no one is hurt at your home, but if it happens, the result could be a demand for you to pay the hospital bills. This can lead to emotionally and financially painful lawsuits. Homeowners insurance offers the confidence that someone has your back financially and that any costs can be covered.

Personal Property Coverage

Burglary is a homeowner’s worst nightmare. Even if burglars don’t destroy your home, they still make off with personal property that may have been very important — or costly. Flood or other water damage can also damage your personal property. With homeowners insurance, you have coverage to replace those personal property items. You may not be able to replace sentimental value, but when it comes to costs or essential function in your home, homeowners insurance has your back.

No one likes to think of worst case scenarios, but as a homeowner, it’s something that you need to consider. While you may not want to put out the money for homeowners insurance right away, remember that not buying homeowners insurance could be even more costly. If you’re still not sure, talk to an experienced College Station realtor about the importance of buying homeowners insurance and how to adjust your budget accordingly.