Is Home Insurance Required by Law?
Homeowners insurance is something that seems ubiquitous, but is it legally required for you to have it? It depends. If you own your home and have no mortgage, no, you don’t legally need to have homeowners insurance. But if you have a mortgage, your lender likely requires that you have home insurance as part of the loan agreement. This is because of the risks associated with loaning such large amounts of money.
Whether you’re required to have it or not, home insurance is important to have to help protect you financially in the event of the unexpected. We’ve highlighted some key features of home insurance to remind you just how important it is to have coverage in place to protect your home.
Why You Need Home Insurance
While it may not be legally required to have homeowners insurance if you own your home, not having coverage can greatly affect your finances if your home suffers damage or a loss of some kind. Having insurance helps protect you financially if something happens to or in your home. For instance, things like a house fire or your dog biting someone — both resulting in expensive repair costs or legal fees — can be covered by home insurance. Having homeowners coverage is a responsible move as a home owner and provides peace of mind you’re doing what you can to protect your finances.
Homeowners Insurance Protects Your Home
Damage to your home can be expensive, and home insurance can help provide financial protection from the costs of home repairs after a covered event. The dwelling coverage on your homeowners policy provides coverage for events that damage or destroy the structure of your home, like a fire, hail or wind.
Home Insurance Protects Your Belongings
Your personal belongings are covered by a typical homeowners insurance policy under its personal property coverage. This helps protect you financially from damage to or loss of your belongings, up to certain coverage limits. A little known benefit about this coverage is that it protects your belongings even when you’re not at home. On vacation or staying at a friend’s house for a few days? Your personal property is still covered.
Home Insurance Protects You From Lawsuits
The personal liability insurance coverage on your homeowners policy covers up to a certain amount of legal fees and settlement costs if someone sues you after being injured on your property. You can also add an umbrella policy on top of your personal liability insurance to get more coverage for more substantial cases.
Home Insurance Provides Peace of Mind
With homeowners insurance, you can feel confident that if the unexpected happens you won’t have to put your dreams on hold. Home insurance gives you peace of mind that you’ll be able to recover from the unexpected when things feel hectic after damage or loss occurs to your home.
Other Home Insurance Coverages That Protect You
There are other types of home insurance coverages that you can add to your homeowners policy to provide more protection. Things like identity theft protection, equipment breakdown and service line coverage are additional coverages you can purchase to customize your homeowners insurance to fit your life.
To learn more about the specifics of homeowners insurance, connect with your American Family Insurance agent. They can help break down the types of coverage homeowners insurance provides and walk you through purchasing a customized policy to help protect your home.